Heat-related mortality surges in Europe

What happened: Europe is grappling with a rise in heat-related deaths, with over 1,300 fatalities in recent heat waves. This surge, occurring over the last decade, is driven by increasing heat wave frequency and intensity. Meanwhile, in the U.S., a heat wave claimed at least 19 lives in New Jersey over the 4th of July weekend.

Market impact: The resistance to air conditioning, fueled by Europe's climate-first policies, is exacerbating the impact of heat waves on public health. This could pressure governments to reassess their policies, potentially impacting industries like HVAC manufacturers and energy providers. Companies like Carrier (a unit of United Technologies) and Daikin could see increased demand for cooling solutions, while energy providers may face higher demand for electricity.

What to watch next: The upcoming heat wave forecast for Europe and the U.S. will dictate the immediate impact on public health and energy demand. Additionally, watch for any policy shifts in Europe regarding air conditioning use, which could drive changes in the HVAC industry.