Pink's Bottom Line on Media, Money and Sports

China and the media, the Fed and my NCAA men's basketball picks

In today’s newsletter, I discuss China and the media, the US Federal Reserve and my pick to win the NCAA men’s basketball tournament.

MEDIA: China and Media

The Wall Street Journal is reporting that the Chinese government, which controls media tightly in the country, doesn’t want Alibaba’s media businesses under the group’s control any longer.

Alibaba has emerged as a huge and powerful company in China through its e-commerce, media, retail and other businesses.

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Separately, according to multiple news reports, the Chinese government does not want media outlets to air the Oscars live in China next month.

That’s reportedly because the film Do Not Split, a documentary about recent protests in Hong Kong, received an Oscar nomination. (Here’s a good overview of this story from Variety.)

Both the potential sale of Alibaba’s media assets and the reported government directive to not air the Oscars live indicates the influence that the Chinese government still wields over media.

MONEY: US Federal Reserve

The US Federal Reserve, the nation’s central bank, said today that it is will keep its fed funds rate between zero and 0.25% “until labor market conditions have reached levels consistent with the (Federal Open Market) Committee’s assessments of maximum employment and inflation has risen to two percent and is on track to moderately exceed two percent for some time.”

(Click here to read the Federal Open Market Committee statement from earlier today.)

The Fed cites the negative impact that the coronavirus pandemic is having on the economy, but it does say, “indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak.”

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As such, based on the Fed’s statement today, expect interest rates to remain low for the foreseeable future.

If you couple that accommodative policy with the new government stimulus package, it could drive the economy to a fast recovery.

That assumes, of course, that inflation remains under control, which is never a certainty, but inflation has been tame for a number of years.

SPORTS: NCAA Men’s Basketball Champion

As I wrote in Tuesday’s newsletter, we probably won’t see a Cinderella team make it to the Final Four in this year’s NCAA men’s basketball tournament.

That doesn’t mean we won’t have upsets — including a number one seed — along the way, but I do think most of the top ranked teams are a clear cut above the rest of the field this year.

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Here are my predictions. (Caution: these predictions and $2 will get you a cup of coffee.)

For the Final Four, Gonzaga, a one seed, wins the West region. Baylor, a one seed, wins the South. Illinois, a one seed, wins the Midwest. Alabama, a two seed, wins the East.

Gonzaga beats Baylor in the national championship game.

Upset special: LSU, an eight seed, beats Michigan, a one seed, in the second round in the East.

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Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)