News From the Control Tower - 8/24/2022
News from the Control Tower: Our weekly curated list of news stories affecting you and your finances.
This week’s reads include:
1. Four articles on the impact of heat and water supply on economies in China, Germany, Spain, and Arizona.
i. Factory Shutdowns, Showers for Pigs: China’s Heat Wave Strains Economy
A severe drought has dented energy supplies and disrupted access to water for hundreds of thousands. Cities order rolling blackouts; farmers rush to save crops.
ii. The Rhine is shrinking, endangering Europe's top economy
Germany's Rhine river is getting too dry, snarling supply chains and creating more problems for its struggling economy.
iii. Heat in Europe Is Driving Up Olive Oil Prices
Heatwaves and drought in Spain, the world’s largest olive oil producer, are expected to hit the coming harvest
iv. Saudi water deal threatening water supply in Phoenix
Arizona is leasing farmland to a Saudi water company, straining aquifers, and threatening future water supply in Phoenix.
2. The Smoke and Mirrors of Modern Fortunes
Ronald O. Perelman made more money than most people could spend in several lifetimes and in the process reshaped the way Wall Street does business. Now his prize company is bankrupt and his beloved possessions are fading away like a mirage. Bad luck or is the old financial wizard offering a final lesson on the future of wealth?
3. Why Are C.E.O.s Suddenly Obsessed With ‘Elasticity’?
The economic concept, which describes consumers’ sensitivity to prices, is a hot topic as inflation soars and executives fret about profits.
jkaraian (@Jason Karaian) Tweeted: This quarter, CEOs seem obsessed by one thing: "elasticity." It's an economic concept that says a lot about the precarious state of the consumer as inflation soars.
4. Why Work When You Can Play? Young Travelers Say They’ll Live Now, Make Money Later
Gen Z vacationers say they are making rigorous budgets behind the scenes to keep track of costs
The signals from central banks that rate hikes, which began last year, may be coming to an end could be welcome news for investors looking ahead to the next 12 months.
Bonus: Dinosaur tracks from 113M years ago have become visible amid drought
Dinosaur Valley State Park saw new tracks as a drought unveiled age-old wonders.