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Bitcoin, Boeing, and Luxury Real Estate
21st March 2024
Girl Economics Admin
March 21, 2024
In this edition…
We are carrying on with this new format that everyone seemed to love yesterday! I’ve found some of the most interesting economics stories of the past day with a longer piece on the changing economics of luxury real estate!
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Articles of the Day
Trump is facing difficulties finding surety companies to pay the bond that is demanded by the civil fraud judgement taken against him in New York. Might Trump Towers be seized? TOPICS: Trump, law and justice, fraud | Trying to diversify their economy away from reliance on oil, the UAE is investing heavily in infrastructure, subsidies, and talent to attract the next generation of AI entrepreneurs. TOPICS: AI, regulation, diversification, Middle East |
In The News
Bitcoin volatility is back
Bitcoin has seen a 16% decline from its recent all-time high, attributed to a significant slowdown in investor activity in new stock market funds. This drop follows significant outflows from bitcoin exchange traded funds (ETFs) in the last two days, particularly within Grayscale, the largest bitcoin ETF. Despite regulatory approval boosting investor confidence in bitcoin, its lack of fundamental valuation metrics makes it vulnerable to major swings. While some ETFs like BlackRock's have seen substantial inflows, others have experienced minimal activity. Analysts view the recent correction as minor, with no significant concerns about bitcoin's long-term prospects.
Confidence in Boeing is crashing…
The recent door panel incident on an Alaska Airlines Boeing 737 Max 9 has reignited concerns about Boeing's safety culture and manufacturing standards. A preliminary investigation revealed that the aircraft left the Boeing factory missing four bolts necessary to secure the door panel. In response, regulators have capped Boeing's output of the 737 Max. CEO Dave West acknowledged the need for improvement in safety, quality, and compliance and the incident has intensified pressure on Boeing from its major customers, with some warning that the company is on its "last chance" to address manufacturing issues. Delays in aircraft deliveries are expected to continue, impacting airlines like Ryanair, which may face flight cancellations during peak travel months. Boeing is considering acquiring its supplier Spirit AeroSystems to enhance manufacturing processes, despite concerns raised by analysts about potential integration risks.
Europe’s lacklustre stocks seem to be regaining their shine
Investors are bullish on European travel, retail, and luxury stocks, anticipating increased consumer spending amid economic recovery. Car manufacturers like Renault and Stellantis have surged, along with entertainment group Eventim and jewellery maker Pandora. This renewed sense of confidence stems from successful inflation control measures by the Central Bank and expectations of future ECB rate cuts. Falling natural gas prices have also contributed to an improved economic outlook. Analysts expect a positive uptick in personal spending, prompting investment shifts towards consumer brand stocks. These stocks offer secure returns, benefiting from both European and US consumer resilience.
From the Community
Breaking down Sotheby’s Luxury Market Outlook for 2024
In the world of luxury real estate, sustainability is taking center stage in 2024. Sotheby’s International Realty's latest Luxury Outlook Report reveals that today's affluent buyers are prioritising eco-conscious homes equipped with green features like solar panels and electric car charging stations. This shift reflects a growing awareness of environmental risks and a desire for properties which are aligned with sustainability goals.
Another trend (surprise, surprise) is incorporating artificial intelligence into properties. AI is revolutionising the way buyers envision potential renovations, allowing them to experiment with various design changes virtually before making a purchase.
While the market is showing signs of stabilization, with interest rates falling and recession fears easing, buyers still value turnkey properties over fixer-uppers. However, those willing to invest in renovation projects may find hidden value opportunities. As the luxury real estate market evolves, Sotheby’s agents anticipate continued demand for sustainable properties and a gradual return to market normalcy post-pandemic.
Term of the day: Chicago School Economics
An economic ideology originating from the University of Chicago, linked with advocating for the free market, monetarism, and the assumption of rational self-interest in human behaviour. Prominent figures within this school include Gary Becker, Ronald Coase, and Milton Friedman. Its prominence grew in the 1970s, coinciding with the decline of the Keynesian consensus and the adoption of its principles by conservative policymakers.
The Spotlight
 | Anna SchwarzAnna Schwartz, an American economist born in 1915, is best known for her collaboration with Milton Friedman on the influential book "A Monetary History of the United States, 1867–1960." Throughout her career, Schwartz made significant contributions to the study of monetary economics, focusing on the role of money supply in shaping economic fluctuations. She emphasised the importance of monetary policy in stabilizing the economy and highlighted the historical significance of monetary factors in driving economic events. Schwartz's work continues to be highly regarded in the field of economics, particularly for its empirical rigor and its impact on monetary theory and policy. |
Competition Time!
That’s all for today’s edition of Girl Economics. As ever, I would love for you to reach out and send me a message on LinkedIn!
See you at lunchtime tomorrow!
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