Office of the Chief Investment Officer of the Regents Broke the Financial Markets the Broke Nearly Coronavirus Day The THE WALL STREET JOURNAL THE WALL May, 2020 May, threatened the viability of America’s companies and municipalities the viability of America’s threatened liquidity crisis that 16 stock crash was part of a broader The March Foreign Students Sour on America, Jeopardizing a $39 Oct. 2019 ‘It’s ridiculous’: People Billion Industry. For the past six years, UC Investments 'What will you tell your children?': They provide critical revenue Gas prices spike Around Greta Thunberg blasts climate to U.S. universities. But the inaction at Davos. Greta Thunberg administration’s immigration above $4 in the World has worked to make sure we were ready told a World Economic Forum panel on crackdown has them going 201Lowe’s to lay off thousands9 of workers— as it outsources2020 their duties ¶ The home-improvement News climate that activists were demanding an elsewhere. ¶ Last May, Luis Carlos Soldevilla graduated with one SF & California Are Panic- chain, based in Mooresville, N.C., declined to say exactly how many employees were affected. But the Wall end to all investment in fossil fuel of the best grade point averages in his Mexico City high school. Street Journal reported that thousands of employees were told this week that their jobs were eliminated, to support the university when the exploration and extraction, calling for a For his senior project, he even tackled Goldbach’s conjecture, a Buying … which the company confirmed. ¶ Lowe’s spokeswoman Jackie Pardini Hartzell said Thursday that the cuts drastic reduction of emissions to zero. famous number theory problem. Soldevilla considered attending are coming as the company moves to third-party assemblers and facility services to allow store associates to She dismissed some of the measures Boston University and the University of Washington, both of Toilet longest-running market expansion in spend more time on the sales floor serving customers. Previously, some store workers did assembly work, mooted by governments and companies, which had accepted him. He also had fond memories of the CORONAVIRUS Paper? such as constructing floor models, and janitorial work. Hartzell said that employees in these positions will such as planting billions of trees to University of California, Berkeley, where during the summer of FALLOUT THREATENS have the opportunity to apply for other open roles at Lowe’s. ¶ She said the company is not disclosing how history came to an end. capture carbon dioxide from the 2016 he took a computer science course.But instead of enrolling AUTO INDUSTRY’S March 2020 many are affected as the number of employees affected varies by store and the company has a strong track atmosphere. Her comments came after at a U.S. school, Soldevilla started this fall at the University of SUPPLY CHAIN record of retaining associates in other roles within the company. (The Washington Post, August 2019) Donald Trump announced the US Toronto, Mississauga, where he’s pursuing a double major in joined the global one trillion tree computer science and mathematics. Why did he pick the Canadi- PUBLISHED FEB initiative. (The Guardian, Jan 2020) an school over those big American names? (Bloomberg, Jan ’19) STOCKS JUST HAD THEIR BEST WEEK IN This year, we faced a crisis of epic DECADES. NOW COMES THE DROP. China Deals ‘Body Blow’ to Struggling Telling investors to sell now, in U.S. Farm Belt — The U.S. Farm Belt 2019 the midst of the coronavirus proportions, in the markets and beyond. J right reasonsos. debt — for the take on more acceptable for the U.S. to it’s say Economists increasingly braced for deeper pain from the crisis, feels a bit like yelling escalating trade battle between the fire in a crowded room—even if And it’s not over yet. there are no crowded rooms anymore. after talks world’s two biggest economies after Still, it feels like the right China said it would suspend all thing to do. ¶ We’re not being imports of U.S. agricultural goods. bearish for bearishness’ sake. in China’s move will aect farmers fact, we’re optimists by nature. Although no one knows where we’ll The market goes up over time, after raising fuzzy green soybean pods in all, and history teaches that it a Illinois, milking cows in California pays handsomely—especially in a land, because of our steady nuary 2020 and feeding hogs in North Carolina, retirement account—to keep the . 2, 2019 all of whom have seen business suer faith. But one of the things about leadership, strong partnerships and the Covid-19 crisis is the speed at Berkshire Hathaway’s as a result of taris that Chinese which things happen. It has been ocials implemented last year. GM workers strike on pay and benefits break down breathtaking...(Barrons, April ‘20) Sept Cash Pile Hits a Record strategic creativity, we’re ready. (The Wall Street Journal, Aug 2019) A a recession because the trade war is more importan a recession because SOMEBODY FINALLY TOLD WALL STREET THE WORLD IS ON FIRE. While the rest of ug 2019 – Trump says it doesn't matter if the US ha doesn't matter if ug 2019 – Trump says it OCTOBER, 2019 us have been feeling every bump, pothole and rumble strip on this godfor- Corporate saken road called 2020, Wall Street had, for weeks, seemed to float above America it all, blissfully unaware. That ended today. (CNN Business, June 2020) Trade War Pause Leaves Few Happy Says Black The Great Coronavirus Crash of 2020 Is Di erent (Bloomberg, Mar ) Lives Matter. The Great Coronavirus Crash has been frightening in its speed and breadth. Stocks have lurched lower worldwide, with brief It Needs rallies between the falls, like wounded bulls in a corrida. to Hold Up Through 1 p.m. on March 18 the S&P 500 index was o 27% for a Mirror. GE Moves to Cut Roughly 13,000 中 the year to date, Germany’s DAX was down 38%, and Japan’s — Aviation Workers Nikkei was o 29%. In the credit market, investors have ed 2020 — 因新冠疫情 ， 中国东 May 2020 junk bonds. Even U.S. Treasury bonds—traditionally a safe harbor in crisis times—have come under pressure, possibly because investors are selling them to cover losses elsewhere. First major Chinese airliner suspends flights to the United States over coronavirus outbreak (Feb 2020) UK will plunge into recession if it 航暂停往返美国航班 FED CHAIR POWELL SPEAKS AND OIL PRICES SURGE, leaves Europe without a Brexit 美 million people abruptly lost their jobs, wiping out LEAVES INVESTORS EXPECTING American Airlines extends STOCKS FALL deal. (CNN Business, 2019) Chevron Will Write Down Assets a decade of employment gains in a single month. A RATE CUT Boeing 737 Max flight AFTER U.S. KILLS The UK Office of Budget Respon- by at Least $10 Billion. Chevron 73 U.S. UNEMPLOYMENT The speed and magnitude of the loss defies cancellations through early IRANIAN GENERAL sibility (OBR) warned Thursday says it will book a charge of at least that "heightened uncertainty and comparison. It is roughly double what the nation PUBLISHED JAN $10 billion because lower long-term September. The airline, which declining confidence" would deter RATE SOARS TO 14.7%, experienced during the entire financial crisis is the largest U.S. carrier, said investment while higher trade prices for oil and natural gas are from 2007 to 2009. ¶ As the virus’s rapid spread the cancellations would affect barriers would slam exports. making some projects less valuable. THE WORST SINCE accelerated in March, President Trump and a "These push the economy into number of state and local leaders put forth 贸 approximately 115 flights per day. (U.S. News, December 2019) recession, with asset prices and THE DEPRESSION ERA restrictions that led businesses to suddenly shut American previously announced the pound falling sharply," said 20.5 million people lost their jobs in April, the down and shed millions of workers. Many £ the government's budget watchdog. ¤ in April that it would cancel flights ¥ Labor Department said Friday. Many analysts businesses and households also canceled all ¦ UK stock markets would fall 5%, Why the Global § on the 737 Max through Aug. 19 due UC INVESTMENTS — MADE FOR THIS MOMENT , 2020 believe it could take years to recover. ¶ The U.S. travel plans. Analysts warn it could take years to while the pound would plummet Coronavirus unemployment rate jumped to 14.7 percent in return to the 3.5 percent unemployment rate the to the Federal Aviation Administra- 10%. GDP would shrink by 2% by April, the highest level since the Great Depression, nation recorded in February, in part because it is the end of 2020. tion’s mandatory grounding of the 1 Recession Could as many businesses shut down or severely curtailed unclear what the post-pandemic economy will The report is a stark warning Boeing jet. (Fox Business, Sept. 2019) operations to try to limit the spread of the deadly look like, even if scientists make progress on a s t 易 ahead of October 31, the latest Last a Long Time 7 deadline for Britain to depart. coronavirus. ¶ The Labor Department said 20.5 vaccine. (The Washington Post, May 2020) 战 STRONG DYNAMIC THE UC STRATEGIC LEADERSHIP PARTNERS INVESTMENTS CREATIVITY WAY 04—15 16—29 30—61 62—94 Statement from CIO Q&A: Ron O'Hanley Made for this Moment Challenge Grows Creativity Jagdeep Singh Bachher from State Street Our 10 Pillars What Happened in Statement from President the Markets Q&A: Doug Leone from The Greatest Wealth Janet Napolitano Sequoia Capital is Health Overview Q&A: Regent Richard A Nobel Cause Endowment Sherman A Transformational Pension Approach to 21st Century Working Capital Investing Blue & Gold Pool Risk Management Fiat Lux Insurance A Brave New World, by Neil Brown Meeting the (Next) Moment Q&A: Arthur Guimarães UC Regents & Officers from UC Investments UC Investments Staff Retire Better 2 3 STRONG LEADERSHIP 5 Every year brings new challenges and went off the rails.