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BlackRock Chairman and CEO Larry Fink is warning that the financial risks of climate change are bigger than any crisis he’s experienced in his career on Wall Street.

““We don’t have a Federal Reserve to stabilize the world like in the five or six financial crises that occurred during my 40 years in finance,” the head of the world’s biggest money manager told CNBC’s Andrew Ross Sorkin in an interview…”

https://www.cnbc.com/2020/01/14/larry-fink-risk-from-climate-change-bigger-than-2008-financial-crisis.html


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The Fed is reportedly considering completely overhauling the current repo market and instead begin allowing the repo market clearinghouse, the Fixed Income Clearing Corp. (FICC), to lend directly to small banks and hedge funds.

“This change would essentially eliminate the larger bank middlemen from the process and provide a direct source of overnight loans for small banks…

However, providing wealthy hedge fund managers with a direct path to Fed lending via the FICC might not sit will with the average American. The prospect of a taxpayer-funded hedge fund bailout would likely trigger political backlash.

https://www.benzinga.com/markets/cryptocurrency/20/01/15122298/the-repo-market-is-so-broken-that-the-fed-wants-to-change-it


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U.S. economic indicators are depicting a broad range of readings.

Many economic measures are depicting or implying weak growth or outright contraction. Numerous highly worrisome economic trends persist.”

https://seekingalpha.com/article/4316642-charts-implying-economic-weakness-january-2020


The Trump administration plans to restrict the news media’s ability to prepare advance stories on market-moving economic data, according to people familiar with the matter, in a move that could create a logjam in accessing figures such as the monthly jobs report.”

https://www.bloomberg.com/news/articles/2020-01-14/u-s-seeks-biggest-change-to-economic-data-releases-in-decades


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Flybe is the latest European airline fighting for survival following a string of collapses over the past few years that have left thousands of passengers stranded in airports and had a knock-on effect on related industries such as hospitality.

“Here is a summary of European airlines that have gone bankrupt since 2017…”

https://www.reuters.com/article/us-europe-airlines-collapse-factbox/factbox-european-airline-collapses-since-2017-idUSKBN1ZD1I3


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“…as the era of globalization turns into one of protectionism and economic nationalism. Germany will suffer much more than other large economies from the present and coming trade wars, whether between the U.S. and the European Union or the U.S. and China.

“The emerging topography of new tariffs and other barriers is already causing companies to redesign their global supply chains, with many leaving Germany…”

https://www.bloombergquint.com/gadfly/germany-s-second-economic-miracle-is-ending


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Iran is caught in a wretched economic crisis. Jobs are scarce. Prices for food and other necessities are skyrocketing.

“The economy is rapidly shrinking. Iranians are increasingly disgusted. Crippling sanctions imposed by the Trump administration have severed Iran’s access to international markets, decimating the economy, which is now contracting at an alarming 9.5 percent annual rate…”

https://aawsat.com/english/home/article/2083696/iran%E2%80%99s-grim-economy-limits-its-willingness-confront-us


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“India’s lacklustre performance has also been aggravated by the global economic downturn and ongoing international trade disputes between the US, China and the EU.

“In a climate of growing protectionism, India’s exports have declined… Meanwhile, unemployment has soared.”

https://qrius.com/how-the-worlds-fastest-growing-nation-went-off-the-rails/


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India’s annual electricity demand in 2019 grew at its slowest pace in six years with December marking a fifth straight month of decline, government data showed, amid a broader economic slowdown that led to a drop in sales of everything from cars to cookies and also to factories cutting jobs.”

https://uk.reuters.com/article/india-electricity/update-2-indias-annual-electricity-demand-grows-at-slowest-pace-in-6-years-idUKL4N29J2UG


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The Bank of Japan on Wednesday downgraded its economic assessments of three out of the country’s nine regions, citing slowing production due to weak demand from overseas economies.”

https://www.japantimes.co.jp/news/2020/01/15/business/economy-business/boj-downgrades-assessments-regions-slowing-global-economy/#.Xh7VaMj7TIU


The number of corporate bankruptcies in Japan increased in 2019 for the first time in 11 years, affected by a consumption tax hike, labor shortages and a series of natural disasters, a credit research agency said Tuesday. Business failures with debts of at least 10 million yen rose 1.8 percent from the previous year to 8,383, the first increase since the 2008 global financial crisis…”

https://japantoday.com/category/business/japan-corporate-bankruptcies-rise-in-2019-for-1st-time-in-11-years


“Despite the ongoing debate, central banks are in no hurry to raise rates. The Federal Reserve tried a succession of increases in an effort to normalize policy, but last year had to cut three times as markets began to rebel against the hikes.”

https://www.cnbc.com/2020/01/14/interest-rates-bond-data-back-to-black-death-shows-low-rates-here-to-stay.html


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“...the lesson is not that the [US] economy is not threatened with recession, but that it simply didn’t come last year.

“Some combination of fiscal stimulus from tax cuts and lower interest rates, lower costs from deregulation, and simple consumer confidence has kept the U.S. economy buoyant.”

https://www.forbes.com/sites/michaellynch/2020/01/14/the-bear-case-for-oil-possible-recession/#62d964805705


Oil prices are trading below where they were before the Soleimani assassination, which suggests that the markets are much more concerned with weak demand and oversupply than they are with geopolitical risk.”

https://www.nasdaq.com/articles/are-oil-prices-still-too-high-2020-01-14


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Global semiconductor firms suffered a decline in revenue last year as a huge oversupply in the market and a slowdown in smartphone sales took their toll.

“Semiconductor revenue totalled $418.3bn (£322bn) in 2019, down almost 12 per cent on the previous year, according to figures from research firm Gartner.”

https://www.cityam.com/chipmaker-revenue-slips-amid-global-oversupply-and-smartphone-slowdown/


Read the previous ‘Economic’ thread here and visit my Patreon page here.

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