Europe's gas and power concerns have been fading recently, driven by a fortuitous combination of a mild winter and lower demand for energy. This is good news. But the current gas prices are not low and Europe's gas supply remains fragile. Elevated energy prices are a significant contributor to inflation and a large drag on European growth for this year, at least.
Global warming has already had a major impact on the occurrence of snow. Snow and glacier melt is largely responsible for filling the world's natural water towers. The system is subject to diverse and intensive use. But will it stay that way?
Russia's brutal invasion of Ukraine has exposed the chimera of fueling economic growth whilst moving to cleaner sources of energy and keeping climate change in check.
German government, industry and citizens are called to make choices that may slow or even reverse some of the country's ambitious climate goals.
The oil and gas prices surge in the post-COVID recovery period and, more substantially, due to Russia's invasion of Ukraine, gave the perception that oil firms are unfairly profiting from high energy prices, or even worse, from war and bloodshed.
Neutrality is an inherent component of Swiss identity and origin; historically, neutrality has been critical to Switzerland's security and foreign policy. The Swiss foreign-policy stance of strict neutrality has become less applicable in the post-Cold War world order, forcing Switzerland to re-interpret its neutrality policy in light of the Ukrainian conflict.
As central banks appear to be committed to changing their mindset by transitioning from QE to QT, investors should be prepared to change their paradigm and assumptions about central banks' support. The risk is for some of the investors to metamorphose from QE-addicted Wolfs of Wall Street to QT-intolerant Chihuahuas of Bahnhofstrasse.
