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Climate change is posing a bigger risk to bank balance sheets than the subprime mortgage crisis that contributed to the Great Recession, according to the co-author of a new study on the vulnerability of commercial loans.

“The study, conducted by the sustainability nonprofit Ceres and released last week, found that up to 10 percent of the value of U.S. commercial loans at leading banks is at risk of being wiped out by the effects of floods, fires, extreme heat and hurricanes.”

https://thehill.com/policy/equilibrium-sustainability/572229-banks-at-bigger-risk-from-climate-than-subprime-mortgages


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Climate financial risk is real and, like in 2008, the deniers are wrong.

“Unlike the 2008 global financial crisis – when banks were bailed out and global financial regulation overhauled – unmitigated climate change will lead to a crisis with irreversible outcomes.”

https://www.scmp.com/comment/opinion/article/3148698/climate-financial-risk-real-and-2008-deniers-are-wrong


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US Census data shows COVID pandemic unwound progress on poverty.

“U.S. household income fell in 2020 while the national poverty rate rose from a 60-year low as the Covid-19 pandemic upended the U.S. economy and threw millions out of work.”

https://www.aljazeera.com/economy/2021/9/14/us-census-data-shows-covid-pandemic-unwound-progress-on-poverty


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From zippers to glass, shortages of basic goods hobble U.S. economy… Shortages of metals, plastics, wood and even liquor bottles are now the norm.

The upshot is a world where buyers must wait for delivery of items that were once plentiful, if they can get them at all.”

https://www.reuters.com/world/the-great-reboot/zippers-glass-shortages-basic-goods-hobble-us-economy-2021-09-13/


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New records are being set daily at the Los Angeles-Long Beach Port Complex as ships filled to the brim with cargo continue to pour into U.S. ports [and are unable to dock] amid the unprecedented pandemic-driven import boom.

“The Marine Exchange of Southern California said 142 total ships were in port on Tuesday, setting a new all-time record for a third time since Friday.”

https://gcaptain.com/new-records-set-daily-for-number-of-ships-at-los-angeles-and-long-beach-ports/


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Half a million [UK] homes to be given new energy supplier after two more go bust.

“About half a million households will be moved to a new energy supplier after Utility Point and People’s Energy became the latest energy companies to go bust amid record energy market prices.”

https://www.theguardian.com/uk-news/2021/sep/14/half-a-million-homes-to-be-given-new-energy-supplier-after-two-more-go-bust


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Britain’s reservoir revolution: Water firms launch £500million plan to build up huge supplies to prevent taps from running dry as climate change advances.

“The moves comes against the background of climate change, which is predicted to create hotter, drier summers with associated droughts and wetter winters.”

https://www.dailymail.co.uk/news/article-9990969/Water-firms-launch-500million-plan-reservoirs-climate-change-advances.html


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China economy slowed in August, raising fears for global recovery.

“China’s slowing growth underlines how the spread of the delta variant of the coronavirus is challenging the world’s economic recovery from the pandemic. The slowdown in construction — which pushed China’s steel output to a 17-month low in August — is rippling across the global economy…”

https://www.aljazeera.com/economy/2021/9/15/china-slows-down-in-august-fueling-concerns-for-global-recovery


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Chaotic scenes erupted at the headquarters of cash-strapped developer China Evergrande Group on Monday, as roughly 100 disgruntled investors crowded its lobby to demand repayment of loans and financial products

”Evergrande, give us our money back!” they chanted.”

https://www.reuters.com/world/china/disgruntled-china-evergrande-investors-crowd-headquarters-protest-2021-09-13/


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Explainer: How China Evergrande’s debt troubles pose a systemic risk… Total liability, which include payables [is] 1.97 trillion yuan, accounting for around 2% of the country’s GDP…

Late payments could trigger cross-defaults as many financial institutions have exposure to Evergrande… A collapse of Evergrande will have a large impact on the job market. It has 200,000 staff and hires 3.8 million people every year for project developments.”

https://www.reuters.com/business/how-china-evergrandes-debt-troubles-pose-systemic-risk-2021-09-14/


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China Evergrande’s liquidity crisis deepens on report of interest payment miss.

“China’s major banks have been notified by the housing authority that Evergrande Group won’t be able to pay loan interest due Sept. 20, Bloomberg reported on Wednesday…”

https://uk.sports.yahoo.com/news/fitch-says-possible-china-evergrande-025347807.html


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Chinese manufacturers are pumping out record volumes of freight containers after shippers ordered vast stacks of the steel boxes in an attempt to smooth out disruptions in the global supply chain.

Despite the extra wave of orders, however, shipping executives are warning it will do little to ease the global ocean freight and supply problems…”

https://www.ft.com/content/c3e4780c-8e28-45dd-af4c-c63e8ed217ab


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Chip shortage drags on as plant closures hit carmakers… With a cascade of factory closures across Europe, North America and Asia, the shortages are likely to continue well into next year…

Estimates of the likely hit to car production because of the shortages have shot up in recent days.”

https://www.ft.com/content/86336d38-6b89-4637-a2a5-3978d14fb324


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UN warns 1 million Afghan children at risk of starvation before winter hits.

United Nations Secretary-General António Guterres gave the warning while speaking in Geneva at a U.N. conference on the matter of Afghanistan’s dwindling resources and the livelihood of its people.”

https://thehill.com/policy/international/un-treaties/572088-un-warns-one-million-afghan-children-at-risk-of-starvation


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Looming’ food crisis as jihadists ravage Niger’s Tillaberi…

The vast arid region, along with central Mali, has become the worst-hit area in the jihadists’ nine-year-old campaign in the Sahel. Thousands of people have died and tens of thousands have fled their homes.”

https://news.yahoo.com/looming-food-crisis-jihadists-ravage-132039931.html


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Warning over hunger crisis gets louder in East African countries.

Kenya, Uganda, South Sudan, Ethiopia, Rwanda, and Somalia are all currently facing different levels of food deficiencies due to drought, insufficient rainfall, conflict, locust invasion, and the aftershocks of Covid-19…”

https://www.monitor.co.ug/uganda/news/warning-over-hunger-crisis-gets-louder-in-east-african-countries-3548886


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US warns of funding shortfall as Yemen famine crisis deepens.

Senior officials from US President Joe Biden’s administration on Tuesday warned of stark funding shortfalls for aid work in Yemen, where fighting in the Marib region and elsewhere has pushed millions towards poverty and famine.”

https://www.thenationalnews.com/world/us-news/2021/09/14/us-warns-of-funding-shortfall-as-yemen-famine-crisis-deepens/


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Plague hits Madagascar as Oxford team races to finish the revolutionary vaccine.

A plague outbreak has killed at least seven people in Madagascar, as the island nation struggles to fend off a devastating famine and UK scientists race to develop a new vaccine for the ancient killer.”

https://www.telegraph.co.uk/global-health/science-and-disease/plague-hits-madagascar-oxford-team-races-finish-revolutionary/


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Global Debt Hits Record $296 Trillion as World Lockdowns Ease…

“Global debt loads surged during the second quarter as households seized on low mortgage rates and governments continued borrowing heavily to revive pandemic-battered economies.”

https://www.bloomberg.com/news/articles/2021-09-14/global-debt-hits-record-296-trillion-as-world-lockdowns-ease


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Investors turn bearish on global economy though positioning upbeat – Bank of America survey.

Barely a tenth of respondents in a monthly fund manager survey expect a stronger global economy in the coming months, marking the lowest proportion since last April’s initial COVID-19 panic…”

https://www.reuters.com/business/global-markets-survey-bofa-urgent-2021-09-14/


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The world is facing a dangerous bout of ‘stagflation’ as the economic recovery slows and prices rise, experts have warned.

In a gloomy report entitled Now For The Hard Part, Capital Economics said data from the US to China suggests that the rapid rebound from the pandemic is beginning to tail off.”

https://www.thisismoney.co.uk/money/news/article-9986489/Whiff-stagflation-hangs-global-economy-prices-rise.html


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Shutdown and Aftershocks — Covid and the new world order…

“A global threat such as Covid-19, one that does not discriminate between nations, ideologies or races, might have been expected to encourage or force even rival great powers to work together. Instead, it has done the opposite, becoming itself a tool of systemic rivalry.”

https://www.ft.com/content/0468e02b-bd17-439c-b9dc-dfd0651b24e8


You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.

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