Heatwaves and waterways
Summary
This Unhedged episode examines the economic impact of Europe’s severe drought, focusing on how low Rhine River levels disrupt German logistics and industrial production. Hosts Pushkin and Katie Martin speak with FT’s Olaf Storbeck about the crisis’s effect on GDP, supply chains, and food prices. They discuss the political inertia regarding river deepening and long-term climate adaptation strategies.
Topics discussed
Promo for FT Weekend Festival and Unhedged live event
Introduction: Extreme heat and drought in Europe
Guest intro and personal accounts of German heatwave
Economic impact: GDP forecasts and supply chain warnings
The Rhine River: Geography and critical economic role
Shipping crisis: Low water levels and reduced cargo capacity
Workarounds: Sunday truck bans and logistical challenges
Corporate adaptation and revised growth forecasts
Broader impacts: Food inflation and agricultural losses
Political inaction and the debate on river deepening
Long-term risks: Melting glaciers and water management
Long Short: Winter, bonds, and sign-off
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