This week in charts
Inventory
Momentum
U.S. equities
U.S. small caps
Mortgage renewals
Emerging markets vs. developed markets
IPOs
Government debt
Green Deal fatigue? How the European Parliament elections could affect EU climate policies.
The European Union (EU) likes to present itself as a decarbonization pioneer. Its ambition to make Europe the first climate neutral continent by 2050 has been translated into bold measures that challenge the economic and social status quo. The European Green Deal, as the cornerstone climate project of the past European Commission approved in January 2020, set in motion key energy and environmental legislations and established strategies for different sectors.
But now, climate-skeptic voices and opposition to climate efforts are gaining political weight, as shown by recent trends in the European Parliament election results earlier this month. While Europeans still see climate change as a major challenge, discontent with financial developments and concerns about defense and security rank even higher in their priorities, according to the latest Eurobarometer polling.
The risk of a replay of the lost decade in US stocks
No economic model would have predicted stocks would be at all-time highs and credit spreads would be very narrow after the Federal Reserve raised its benchmark interest rate by 5.25 percentage points since early 2022. Yet, that is exactly what has happened.
The Fed seems ready to declare victory in its fight against inflation, but the outperformance of highly speculative investments suggests that even such a sharp increase in interest rates hasn’t been a big enough mop to soak up the excess liquidity sloshing around the financial markets.
There is evidence that speculation could again be curtailing the Fed’s inflation-fighting power, but the central bank seems blind to this. Investors shouldn’t be.
This week’s fun finds
What Competitive Eating Does to the Body
Some may see the annual Coney Island, N.Y., contest as an act of defiance, capturing the holiday spirit. When the British taxed our sugar, we fought for independence. When modern-day doctors tell us to eat fewer carbs that turn quickly into blood sugar, we devour as much as possible on ESPN—and walk away seemingly unscathed.
But this gastric rebellion could damage the body, during competition and over the long haul.
