Olive Oil Now a Luxury Item!Market Sizzle: Olive Oil Crisis, Buffett's Big Give, Sports Fans Fuel Inflation, Wall Street Bears Battle
Ever wondered what would happen if your kitchen staple suddenly became a luxury item? Brace yourselves because the world’s beloved liquid gold, olive oil, is making headlines for all the wrong reasons. Liquid Gold Crisis Deepens
Olive oil, known as liquid gold, is seeing sales drop in Spain and Italy. Prices are too high due to droughts and heatwaves. Deoleo, a big olive oil seller, says people are buying less. Climate change is hurting olive oil harvests in Spain, Italy, and Greece. For two years, production was below demand. Export bans in Turkey, Syria, and Morocco made things worse. Prices jumped over 60% in some EU countries. Spaniards bought 22% less olive oil this year. People are using less oil to make it last longer. Deoleo is importing oil from Argentina and Chile. The US market is more stable, but prices are rising there too. Spanish farmers hope for better harvests next year. Deoleo believes prices will drop in a year as harvests improve. Sports Fans Fuel Inflation
Football fans and Swifties are making inflation rise. Hotels, bars, and flights are more expensive. The European Central Bank (ECB) and the Bank of England (BoE) worry about this. When Taylor Swift came to Lisbon, hotel costs jumped almost 14%. In Germany, Euro 2024 fans caused hotel prices to double. Central banks are concerned because inflation in services is rising fast. This means higher costs for hotels, flights, and restaurants. Wages are growing, pushing prices higher. People now spend more on fun activities than goods. This change is making it hard to control inflation. Despite lowering rates in June, the ECB sees services inflation as a big problem. The same goes for the BoE in the UK. Big events like concerts and sports make it worse, even if only for a short time. Overall, while these events boost local business, they also cause temporary inflation spikes. Central banks need to focus on long-term trends, not just these short bursts. Buffett's Generous Exit Plan
Warren Buffett has detailed how he plans to give away his fortune. After he dies, most of his wealth will go to a new charitable trust run by his three children. Buffett has already donated over half his Berkshire Hathaway shares. His latest donation leaves him with nearly $130 billion in stock. His children will decide how to use this money for good causes. Buffett stopped donating to the Gates Foundation, which received billions from him. Instead, his family’s foundations will continue to get his shares. Buffett, 93, trusts his children to help those less fortunate. He believes they will make wise decisions about his charitable funds. Wall Street Bears Battle On
Few Wall Street analysts still warn of a downturn. They say excited investors ignore risks. Banks like Goldman Sachs and UBS have raised their year-end S&P 500 targets. AI stocks drive the market up 15% this year. Bearish analysts struggle to convince clients. Barry Bannister of Stifel says buyers embrace "fanatical thinking." He predicts weaker growth will drop the S&P 13% by year-end. Peter Berezin of BCA Research also sees a recession coming. High stock valuations worry bears. Evercore ISI’s Julian Emanuel believes selling based on high valuations alone is risky. The economy is slowing, but not collapsing, he says. Bears face job risks in long bull markets. Some, like Tony Dye in 2000, were ousted just before being proven right. JPMorgan analysts warn the S&P might fall 25% by year-end. They doubt AI will boost the economy quickly enough. That’s today’s Market Sizzle! You're currently a free subscriber to Josh Belanger. For the full experience, upgrade your subscription.
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2024年6月29日星期六
Olive Oil Now a Luxury Item!
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