Rising Cocoa Prices are Cracking Geneva’s Marmites

ECB and SNB Cut Rates

• The Nasdaq 100 rose 0.7% last week, while the DJIA fell 1.8%. The S&P 500 also declined by 0.6%. The Labor Department reported a sudden increase in jobless benefit applications last week, reaching a two-month high of 242k, partly due to seasonal factors around Thanksgiving. These figures suggest the job market is weakening, aligning with last week's report of rising unemployment in November.
• The STOXX Europe 600 slipped 0.8%. The European Central Bank (ECB) cut its main deposit rate by 0.25% to 3.0%, the fourth reduction this year. The ECB hinted at further easing by omitting its previous commitment to keep rates “sufficiently restrictive for as long as needed”. The Swiss National Bank (SNB) surprised markets with an unexpected halfpercentage-point rate cut, its largest reduction since January 2015.
• The CSI fell 1.0%. At China’s yearly Central Economic Work Conference, officials pledged to adopt a more active fiscal policy in 2025 by raising the budget deficit and issuing long-term special Treasury bonds for major projects. However, the lack of detailed plans dampened investor confidence.

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Rising Cocoa Prices are Cracking Geneva’s Marmites

Since 2022, cocoa prices have skyrocketed, increasing more than fourfold due to climate challenges, supply chain disruptions and rising global demand. This surge is impacting not only the chocolate industry but also the cultural traditions tied to this treasured ingredient.

In Geneva, cocoa plays a central role in the Fête de l’Escalade , a historic celebration held last week to commemorate the city’s victory over an attempted invasion in 1602. A beloved tradition of the festival involves breaking chocolate marmites - miniature cauldrons filled with marzipan and candies - as a nod to the defenders’ ingenuity.

As cocoa prices have risen, so has the cost of these symbolic treats, an unfortunate burden for Geneva’s citizens.

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