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Flannery Associates, an unnamed investment group, has purchased 52 thousand acres of Solano County’s 530 thousand acres. Most alarmingly, this group has purchased land around the Travis Air Force Base in California - the land acquired is also a part of what’s known as the “Gateway of the Pacific.” Flannery had disclosed that they intended to buy large amounts of agricultural land to grow new crops and diversify with renewable energy sources, such as wind turbines. This prospect confuses locals, as they have reported that the land purchased is “dry farmland.” Flannery disclosed they were planning to lease a “substantial portion” of the land to olive growers; portions of the land in question for lease run along Travis Air Force base. The question of “who owns the investment group?” is being looked into by the Air Force’s ‘Foreign Investment Risk Review Office’ and local reps in the area have asked the ‘Committee on Foreign Investment in the U.S.’ (CFIUS - an arm of the Treasury Department) to investigate the matter. With CFIUS’s involvement, the hope is CFIUS could subpoena Flannery to gain more information on the backers. However, this authority has not historically been conducted, which may mean a subpoena from CFIUS will not happen. Flannery Associates says it is a wholly owned subsidiary of Flannery Holdings (an LLC registered in Delaware). LLCs registered in Delaware do not have to disclose the identity of their owners publicly. Flannery has also told the USDA that its holdings do not need to be registered in Solano because no foreign person “holds any significant interest or substantial control.” The attorney for the group has disclosed that 97% of the company has backing from U.S. investors, with 3% coming from other investors that are “British and Irish.”

On July 9, 2023, Max Verstappen (F1 Driver for Red Bull) became the fifth F1 racer in the sport's history to achieve six consecutive wins after winning the British Grand Prix. Further cementing the Red Bull racing team’s dominance in F1, with this being the team's 11th straight victory (utilizing the drivers Max Verstappen and Sergio Perez). The Red Bull Racing team has been prominent since 2010, utilizing Sebastian Vettel, who drove for Red Bull from 2009 - 2014; they won four consecutive world titles. Vettel became the youngest world champion with the team and currently holds the record for most back-to-back wins (9 consecutively). Verstappen then joined the Red Bull Racing team in 2016, where he won the Spanish Grand Prix on his debut. The team remained stagnant between 2017 - 2020, but in 2021 Red Bull bounced back. They brought on Sergio Perez to support Verstappen and won the drivers’ championship. Since 2021, Red Bull has remained a dominant force. Red Bull Racing first came onto the F1 scene in 2004 when they famously bought Jaguar Racing for $1 (provided that Red Bull Racing would invest 400 million over the next three seasons, 2005 - 2007). The team has come a long way since then. It has yet to be seen if Verstappen can continue this performance in the Hungarian Grand Prix on July 23, securing a step closer and closer to Vettel’s 9-win record.

Recent college grads in China are opting out of the workforce after not securing jobs they deem adequate. According to ‘Statista’ Chinese youth unemployment (ages 16 - 24) hit 21% in June 2023. That is nearly triple America’s youth unemployment, which is 7.5%. The National Bureau of Statistics of China in 2022 reported 26 million newly enrolled students in higher education. At the current unemployment rate, this would result in at least 1.3 million of those students ending up unemployed. As China becomes modernized, young citizens want a better quality of life. Resulting in this new generation of Chinese youth rejecting manual labor and low wages. This unexpected development endangers the seemingly stable Chinese economy and the country’s future as a solid world leader. National Bureau of Statistics of China: 2022 Report Statista: Youth Unemployment in China 2023 Statista: Youth Unemployment in America 2023 Statista: Chinese Age Demographics

The World Meteorological Organization has reported “record-breaking” temperatures across western and southern states. The WMO specifically highlights California, Southern Nevada, Arizona, and Florida experiencing abnormally hotter weather. The National Weather Service has been quoted “Unusually warm waters in the Gulf of Mexico and in Western Atlantic Ocean will contribute to oppressive humidity in nearly coastal areas and limit night time cooling.” Small businesses are suffering from the weather implications in multiple ways. Most notably, small businesses are taking infrastructural hits, especially in Southern states where A/C can break, and systems must be replaced. Natural implications from the heat can take a toll on the areas, resulting in wildfires, affecting manual labor and overall air quality for those workers. Additionally, businesses are struggling to provide adequate cooling methods for employees. The increased burden on the aging power grid in America could lead to blackouts in areas experiencing extreme heat. Kyri Baker, an architectural engineering professor, was quoted “Power lines can carry just a certain amount of power. . . basically heat limited. . . heat up too much they start to sag. If they sag too much, they can touch a tree and short, in addition to being less efficient and result in more losses.” The economic impact of a hotter climate has been studied by the International Monetary Fund, which released findings in 2018 called “Effects of Weather Shocks on Economic Activity.” An overview of the report is that in the short term, high temperatures hurt growth, while colder temperatures help growth. After extreme heat, there are long-lasting effects on lower-income economies: “Even seven years after a weather shock, per capita output is 1 percent lower for the median emerging market economy.” World Meteorological Org. Heatwave Report International Monetary Fund Report: “Effects of Weather Shocks on Economic Activity”

Yellow (a leading trucking company for small businesses, which carved out a niche mainly by offering small-load transport) is filing for bankruptcy, has shut down regular operations, and laid off non-union workers on July 28. Possessing a 6.3% market share of the transport industry, regarding revenue and jobs, Yellow’s collapse would be the biggest historically for U.S. trucking. The pandemic sparked the recent downturn in 2020 when Yellow took out a $700,000,000 Covid relief loan to invest in new equipment and pay off health care, pensions, and other outstanding obligations. The federal loan was provided because of its services in transporting military supplies for the U.S. government. Despite the additional funding, Yellow continues to net losses as competitors such as Old Dominion gain market share. Old Dominion is succeeding from its streamlined regional and long-haul transport service. Yellow tried to integrate networks from previously acquired acquisitions, such as Roadway Corp. and USF, to stay competitive against this streamline. However, Yellow was slow in implementing this unification due to fears that unifying would inflame workers/unions and displease customers who use the companies separately. Now facing the harsh reality of structural failure, Yellow faces another obstacle in the form of their workforce. The labor union known as “Teamsters” is protesting against the new contract terms recently offered by Yellow, which they deem unfair. Historically, cuts to employee benefits and wages at Yellow started in 2010 as a result of the 2008 economic crash. Sean O’Brien, the Teamsters president, is steadfast in the Union’s position, having been quoted at an Atlanta rally saying, “We do not want to see any company suffer and go out of business, but at some point, in time, we cannot keep sacrificing wages, conditions that our forefathers and foresisters had fought long and hard for in our freight division.” With negotiations falling through, the end of Yellow seems to be inevitable - along with the jobs of the tens of thousands of workers on strike. Teamsters’ members believe they will find work amongst the other employers connected to the teamsters union once the closure is final. CSI Market: Yellow Market Data Sean O’Brien Statement on Teamsters Strike

Literature. . . The Red Hotel by Alan Philips was released on July 4; this is a Non-Fiction book about the Metropol Hotel and its function in turning foreign reporters visiting the hotel into mouthpieces for Russian propaganda. Beyond the Story by Myeongseok Kang is set to release July 9; this is a Non-Fiction book dedicated to telling the story of the K-Pop group BTS. Silver Nitrate by Silvia Moreno-Garcia is set to release July 18; this is a “Paranormal Fiction” book about a Nazi occultist imbuing magic into film stock. This story is told from the perspective of a young female sound editor. Everyone Here is Lying by Shari Lapena is set to release July 25; this is a “Mystery Thriller” about the disappearance of a little girl in a “safe neighborhood” that harbors secrets. Cinema. . . Mission: Impossible - Dead Reckoning, Part One (Christopher McQuarrie) will be released July 12 to get the ball rolling for such releases as Oppenheimer (Christopher Nolan) and Barbie (Greta Gerwig), which will release July 21, sparking high box office anticipation. Insidious: The Red Door (Directorial Debut - Patrick Wilson), releasing July 7 + Haunted Mansion (Justin Simien) and Talk to Me (Danny and Michael Philippou), releasing July 28, will also be part of the July blockbuster cycle. Interesting lesser-known releases for July are The Youtube Effect (Alex Winter - Documentary), The Jewel Thief (Landon Van Soest - Hulu Documentary), Stephen Curry: Underrated (Peter Nicks - Apple TV Documentary), and Sympathy for the Devil (Yuval Adler) Music. . . 7/7 Release - Dominic Fike, E-40, GROUPLOVE, Gus Dapperton, Little Dragon, Never Broke Again, Pitbull, Taylor Swift, and Yeat 7/14 Release - Colter Wall, PVRIS, Rita Ora, and Bastille 7/21 Release - Greta Van Fleet, Jennifer Lopez, Blur, and Yellow Card 7/28 Release - Aphex Twin, George Clanton, and Post Malone

Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act is a newly proposed legislation that aims to counter the growing dominance of companies like Google and Meta (Facebook) in the digital advertising space. The AMERICA Act has bi-partisan support from Senators Mike Lee, Marco Rubio, Amy Klobuchar, Lindsey Graham, Elizabeth Warren, and others. The bill is a reaction, primarily to Google’s market dominance. For example, according to Senate.gov, Google Ad Manager is used by 90% of large publishers. In the third quarter of 2018, it served 75% of all online display ad impressions (display ad = ads that users normally see displayed when they browse sites through Google). Google is suspected of using its market position to work with Meta to nudge out competitors like Marin Software and Bing Ads by utilizing tactics such as. . . Manipulating ad auctions to exclude competition from competing ad services. Using its control over publisher ads to block competition from other ad exchanges. The AMERICA Act will impose that Sell-Side/Supply platforms, Buy-Side/Demand-side platforms, and Ad Exchanges must operate independently. It would also mandate companies to allow users to opt out of targeted advertising. Preventing tech companies from having total control over the digital advertising industry. Additionally, the bill will come with penalties for entities that violate the law, which the FTC will enforce. Sell-Side/Supply Platforms = Platforms used by publishers to sell, manage, and optimize the ad inventory on their websites. Buy-Side/Demand-Side Platforms = Platforms for advertisers to bid on advertising space provided by publishers. Ad Exchanges = The virtual marketplace for publishers and advertisers to transact and trade digital ad space. Link to Senate.gov Summary of the AMERICA Act

Writer Labor Union “Writer’s Guild Association” has been striking after being unable to agree with the AMPTP (Alliance of Motion Picture and Television Producers) over a TV and film contract. [Contract terms]. AMPTP comprises Discovery-Warner, NBC Universal, Paramount, Sony, Netflix, Amazon, Apple, and Disney. Points in the terms rejected by AMPTP entirely- Weekly pay infrastructure to be introduced Preserving the Writer’s Room for “Episodic Television.” Duration of employment for “Episodic Television.” Minimum Basic Agreement weekly minimums during post-production. Viewership-based residuals will be added to a base residual pay to reward programs with more significant viewership. Additionally, calling for networks to be transparent with writers about the program's viewership. Ad-Supported Free Streaming Service writers for high-budget programs get TV weeklies, script fees, and improved residuals. Each team member gets Pension & Health contributions as if they were writing individually. AMPTP released a statement then outlining reasons for the rejections and other points of contention [AMPTP statement]. A prolonged strike can take a toll on the local economy of LA. In 2007 there was a similar strike by the WGA, which cost the economy of LA $2.5 Billion (according to Jack Kyser, chief economist of the Los Angeles County Economic Development Corp at the time). Since the Entertainment industry in LA roughly generates $47 billion, a standstill in productivity could generate tough times for the other businesses in the area, as most studios in LA utilize resources in-state.

In the face of the smaller regional banks struggling to stay afloat, smaller banks are tightening lending standards while bigger banks are taking over loans regional banks won’t touch. When there is an expected recession, lending practices become stricter due to more perceived risk to lenders. However, these tighter standards are applying pressure to smaller businesses across the U.S. Small businesses make up roughly 44% of America’s GDP (According to the U.S. Small Business Administration). With that said, having close to half of America’s GDP feeling the weight of restrictions is a concern. According to an opinion survey conducted by the Federal Reserve. Bank employees are reporting tightened lending standards for households and businesses. As a result, banks have seen reduced demand from January through March. Significant shares of banks decreased maximum loan size and market areas covered, as well as decreased maximum loan maturity. Banks are raising interest rates on commercial real-estate loans by more than 3 percentage points and increasing the required amounts for down payments. Some small business owners are considering seeking funding from private sources rather than banks. Goldman Sachs surveyed 1,740 small businesses in May on the current lending situation. Two critical points within the survey are - 77% of respondents reported concern about their ability to access capital, a substantial shift from one year ago when 77% said they were confident in their ability to access capital. 60% say rising interest rates are affecting their ability to pay existing debt. Goldman Sachs Small Business Survey Federal Reserve Lending Opinion Survey

French citizens gathered on May 1st (International Workers’ Day) to protest the new French pension law, raising the retirement age from 62 to 64. In addition to the raised age, it is now required that a citizen must work at least 43 years to be eligible to earn a full pension. Adding further tension amongst French citizens, France's President Emmanuel Macron pushed the law through by utilizing Article 49.3 in the French Constitution, which allows a bill to pass the Assemblée without a vote. To override this move, the lower levels of government would need to hold a vote of “no confidence” that the government/president is not acting in the best interest of France. The “no confidence” vote for this amendment was unsuccessful, as it generated 278 of the 287 votes needed to pass. French pension reform echoes similar changes in other European countries, such as Spain. Spain’s new pension law increased the retirement age to 65 for people who worked 38.5 years. Spanish citizens who have worked less than 38.5 years can retire at 67. These reforms are reactions to aging populations and low birth rates. By increasing the retirement age, the hope is that enough money can be generated into the system while younger generations become eligible to join the workforce, making future deficits more manageable. Aging populations aren’t just a European-focused issue; the global population is steadily aging. According to the National Institute of Aging (an arm of the WHO), “In 2010, an estimated 524 million people were aged 65+, 8% of the world’s population. By 2050, this number is expected to nearly triple to about 1.5 billion, representing 16% of the world’s population.” French Amendment Text NIA Global Health and Aging Report

The Federal Housing Finance Agency created new mortgage fee rules, which take effect May 1st. Here’s how the new rules apply to borrowers. Mortgages backed by Fannie Mae and Freddie Mac will have new upfront fees applied to mortgages. The new fees will “increase (the average borrower’s mortgage) by about 0.04 percentage points, or $10 a month.” says Sandra L. Thompson, a Director at the FHFA. New Mortgage Rule Examples: A borrower with a 640 credit score makes a 20% down payment and gets a mortgage for 80% percent of home value. That borrower now pays a 2.25% fee for the loan instead of 3%. A borrower with a 740 credit score makes a 20% down payment and gets a mortgage for 80% percent of home value. That borrower now pays a 0.88% fee for the loan instead of 0.5%. Under the new rules, if the 740 and the 640 borrowers only put down a 3% down payment, taking a mortgage of 97% home value. Both borrowers would get a lower rate than under the previous rules. The 740 borrower would pay 0.5% instead of 0.75% and the 640 borrower would pay 1.5% instead of 2.75%. To verify if Fannie Mae or Freddie Mac backs your mortgage, you can contact your bank, or you can verify on either of these websites below - Fannie Mae Freddie Mac Sandra L. Thompson’s note on new rules to the WSJ VERIFY’s short video examples for new rules

Art Basel and the United Bank of Switzerland (UBS) published a 2023 Art Market overview by Clare McAndrew, an ‘Art Economist.’ The report is the only current overview of art trade sales that combines auctions and estimates from private dealers. Dealer estimates are provided based on survey responses from 1.3K businesses out of roughly 300K businesses in the market - survey numbers are not verified. After publishing the report, Clare McAndrew was quoted with this main takeaway, “The high end has rocketed away. It has squeezed the bottom end.” This is a direct quote from the report provided below - “The high end of the market continued to be the driver of growth in 2022. Sales in the public auction sector dipped slightly by 1% to $26.8 billion, with works priced at over $10 million being the only segment to increase in value. The dealer sector grew by 7% to $37.2 billion, and sales for those operating at the higher end were significantly better than their peers in the lowest tiers.” Wholistically, Auctions are down slightly, while dealers are seeing growth, despite record-breaking auction sales during 2022. Sales at art fairs are going down while the move to online buying picks up traction amongst collectors. This shift to online buying can mainly be explained as a lingering effect of the pandemic, where online buying assisted in keeping dealers above water. Smaller dealers (younger dealers) already had an online infrastructure for collectors to buy artwork, generating high competition between established and smaller dealers online during the pandemic. This high level of competition persists into 2023. Additional topics in the report – the futures of NFTs, the growth in billionaire wealth and how that plays into the art market’s growth/ what that market is collecting, and how current political unrest has impacted overall growth. 2023 Art Market Report 2023 Art Market Report Masterclass Talk