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In a recent report, the Bank for International Settlements, the bank of the world’s central banks, issued an ominous warning. It drew attention to the growing gap between buoyant world asset and credit market prices and the weak post COVID-19 world economy.

“It warned that such disconnects should not be expected to continue indefinitely and that when they do end, they generally unsettle [I’m thinking that a stronger word than “unsettle” may be warranted here] the world’s financial markets.”

https://thehill.com/opinion/finance/517030-as-economic-storm-clouds-gather-abroad-are-us-policymakers-paying-attention


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US Investors are gearing up for the year’s record-breaking pace of corporate bond issuance to continue in the coming week

“The breakneck pace of fresh issuance illustrates how the Fed’s late March pledge to backstop credit markets and its policy of holding interest rates near zero have spurred borrowing by corporations this year.”

https://uk.sports.yahoo.com/news/corporate-debt-frenzy-rolls-worries-185150591.html


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Wall Street’s foray back into lending to homeowners with spotty credit isn’t looking great during the coronavirus pandemic.

“…delinquencies on residential mortgages bundled into private bond deals, or without government backing, have shot up to about 18% as of July from a low of about 4% in January, according to Goldman Sachs.”

https://www.marketwatch.com/story/wall-street-home-loans-arent-looking-great-in-this-crisis-11600453426


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The problem with the U.S. economy is there are too many poor people

“Until employment and wages increase, the U.S. economy will remain at best bogged down and at worst digging a deeper hole for all of us, our children and grandchildren.”

https://www.cnbc.com/2020/09/18/michael-farr-the-problem-with-the-us-economy-is-there-are-too-many-poor-people.html


Officers requested a “heat ray” weapon for possible use against protesters in a park next to the White House in June, a National Guard major has said.”

https://www.bbc.co.uk/news/world-us-canada-54187961


Gardaí are increasingly concerned by the presence of far-right extremists at anti-mask rallies in Dublin and the possibility of serious violence breaking out at future events.”

https://www.irishtimes.com/news/crime-and-law/garda-concerned-over-increasing-participation-of-far-right-in-anti-mask-protests-1.4358684


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Police have made 32 arrests during a demonstration in central London against coronavirus restrictions and mass vaccinations.

“More than a thousand people are estimated to have joined the rally in Trafalgar Square, among them 5G conspiracy theorists, coronavirus sceptics and “anti-vaxxers”.”

https://www.theguardian.com/uk-news/2020/sep/19/coronavirus-protesters-in-london-may-get-arrested-police-warn


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Speculation is mounting that the Bank of England could take interest rates into negative territory for the first time in history next year if the UK economy weakens further…

“…analysts zeroed in on a few lines within the MPC meeting minutes, showing negative interest rate policies were being prepared.”

https://ca.finance.yahoo.com/news/bank-of-england-negative-interest-rates-september-mpc-meeting-075336027.html


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The UK’s largest nightclub operator, Deltic Group, has enough cash to last another two months. Its chief executive, Peter Marks, has doubts the company can survive much longer…

“While retailers, restaurants and other UK businesses were given permission to reopen weeks ago, nightclubs — with their sweaty dance floors and loud music — remain out of bounds.”

https://www.ft.com/content/3b1535f3-478b-4bd1-a1e4-613ef675e12f


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“The [health] system has already collapsed,” said Madrid-based paediatrician Natividad Gil García. “In the next two weeks, if we continue like this, it will definitely sink.”

“…Healthcare centres are on the frontline of containing the pandemic, an added burden to a basic pillar of care that in Madrid has seriously deteriorated since the economic crisis of 2008.”

https://www.euronews.com/2020/09/18/the-system-s-collapsed-doctors-alarm-over-covid-s-impact-on-healthcare-in-madrid


The Turkish lira weakened to a fresh all-time low against the dollar on Friday as investor attention focused on prospects for further central bank tightening steps ahead of its policy-setting meeting next Thursday.”

https://www.nasdaq.com/articles/turkish-lira-hits-new-record-low-as-cenbank-meeting-looms-2020-09-18


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If the Turkish economy collapses banks in Europe will fall

“Spanish, French, British and German banks still have over a hundred billion dollars invested in Turkey… In particular, Spanish financial institutions should hope that the situation in Turkey will stabilize…”

https://greekcitytimes.com/2020/09/20/if-the-turkish-economy-collapses-banks-in-europe-will-fall/


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Hundreds of Israelis protested in Tel Aviv late Thursday against a second nationwide lockdown to combat Israel’s surging coronavirus outbreak.

““The economy is in free-fall, people are losing their jobs, they’re depressed,” said Yael, one of between 300 and 400 demonstrators at Habima Square.”

https://www.timesofisrael.com/hundreds-protest-in-tel-aviv-against-new-virus-lockdown/#gs.gkp607


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Fitch Solutions has revised downward its forecast for fuel demand contraction in India to 11.5 per cent in 2020 in line with further deterioration in the country”s economic outlook

“The domestic COVID-19 outbreak shows no signs of abating, with daily cases continuing to accelerate.”

https://www.outlookindia.com/newsscroll/indias-fuel-demand-to-contract-115-in-2020-fitch-solutions/1938853


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Across this nation of 1.3 billion people, companies say they are struggling to keep up with their loans

India’s banks, too, are reeling from the pandemic… Banks already have bad loans of over $120 billion, much of it on the books of state-run lenders, which dominate India’s banking landscape, and the non-performing debt is set to surge in coming months.”

https://uk.reuters.com/article/health-coronavirus-india-loans/eye-watering-problem-indian-opticians-claim-threatens-nations-banks-idUSKBN26929X


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Global box office slump a worrying sign for Indian film business.

“Marquee Hollywood productions Tenet and Mulan, which were being considered a litmus test for box office collections have churned lackluster numbers.”

https://www.livemint.com/industry/media/global-box-office-slump-a-worrying-sign-for-indian-film-business-11600578436625.html


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Soaring prices of agricultural products are stoking food-security jitters in China.

“According to the China’s National Bureau of Statistics, food prices went up by 13 percent in July, compared to the previous July; the price of pork rose about 85 percent.

“On a year-on-year basis, food prices have increased by 10 percent in 2020 — the price of corn is 20 percent higher and the price of soybeans, 30 percent.”

https://thehill.com/opinion/international/516607-another-famine-coming-china-struggles-to-meet-basic-food-demands


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“The monsoonal showers did not stop them. Nor did the specter of 8,550 police officers, whose armed presence evoked violently crushed protest movements in Thailand’s past.

Thousands of protesters gathered in Bangkok on Saturday, calling for change…”

https://www.nytimes.com/2020/09/19/world/asia/thailand-protests.html


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Police have arrested 16 anti-lockdown protesters and fined 21 others during “chaotic” scenes in Melbourne’s south-east in which demonstrators were chased by police on horseback.

“There was “a lot of running and not much protesting”, one photographer said.”

https://www.theguardian.com/australia-news/2020/sep/19/melbourne-anti-lockdown-protesters-arrested-and-chased-by-police-on-horseback


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Japan’s banks face fresh problem as pandemic casts pall

“Japanese officials don’t mouth the words ‘Lehman Brothers’ often, and certainly not casually. One reason: few are more sensitive to the risk of a banking system shock that shakes the entire economy.”

https://www.globalcapital.com/article/b1nfm0lypbhlg4/japans-banks-face-fresh-problem-as-pandemic-casts-pall


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HSBC Holdings Plc slumped below its financial crisis closing low set more than a decade ago as pressures mount on several fronts, including political tension in Hong Kong, the fallout of the pandemic and renewed Brexit turmoil in the UK…

“Europe’s largest bank has been caught in a maelstrom of trouble over the past year amid unrest in its biggest market, Hong Kong. It also faces difficulties in navigating low interest rates and surging loan losses sparked by the global pandemic.”

https://www.hindustantimes.com/business-news/hsbc-shares-slump-below-level-last-seen-in-2008-financial-crisis/story-iDGP6dSZ03F8tneGobxR5O.html


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Global light vehicles sales are expected to fall by 20 per cent this year compared with 2019 following sales and production disruption due to the Covid-19 pandemic, S&P Global Ratings in a report published on Friday.

“”This new forecast follows a first-half 2020 sales slump of 25 per cent, an unprecedented shock for the global industry,” said S&P Global Ratings analyst Vittoria Ferraris.”

https://auto.hindustantimes.com/auto/news/global-auto-sales-forecast-to-fall-by-20-this-year-s-p-41600414521956.html


You can read the previous ‘Economic’ thread here and visit my Patreon page here. I’ll be back tomorrow with the climate news.

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