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Stagflation Fears Cast Longer Shadow on Markets as Energy Surges

““The next big issue confronting markets could well be energy prices,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte… “I am actually getting quite concerned as we head into winter that nobody is really hedged against this move as we could see a very sharp spike in energy prices into the last quarter. That may feed through into ever more inflation.””

https://www.bloomberg.com/news/articles/2021-09-16/stagflation-fears-cast-longer-shadow-on-markets-as-energy-surges


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Demand for uranium has seen a surge overnight with prices sitting at a nine-year high.

“Shortages in supply for uranium saw its price rise from US$30 a pound just a month ago to US$48 a pound on Thursday with the share prices of Australian companies up by 70 per cent over the last couple of weeks.”

https://www.skynews.com.au/business/markets/uranium-prices-surge-amid-shortages-in-supply/video/55ddf4087f79a1245efa971ada06a649


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Britain faces a winter of economic carnage unless the Government gets its act together now

“Prices are rising. Wages are soaring out of control. Covid still threatens to close down the economy in the blink of an eye, and, on top of all that, there could easily be power shortages, closing schools and factories, over the winter.”

https://www.telegraph.co.uk/news/2021/09/16/britain-faces-winter-economic-carnage-unless-government-gets/


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High gas prices force closure of two UK fertiliser plants.

“Soaring gas prices have forced the closure of two fertiliser plants in the north of England in one of the first signs that a global supply crunch could force many energy-intensive industries to scale back activity this winter.”

https://www.ft.com/content/b2e7b6ed-fa14-48e1-a463-4d3b09c654dd


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U.K. Energy Crisis Deepens as Fire Knocks Out Key Cable… a fire shut down a major cable bringing power from France, adding to the risk of economic disruption as Britain heads into winter.

“Gas and power prices jumped as the U.K. grid operator said the cable will be out for at least a month.. The timing couldn’t be worse…”

https://www.bloomberg.com/news/articles/2021-09-15/u-k-energy-crisis-deepens-as-fire-knocks-out-a-key-power-cable


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Europe’s Energy Crisis Is Becoming A Perfect Economic Storm… Electricity and natural gas prices are reaching record highs… there are prospects for a socio-economic crisis

“A massive economic and presumably political crisis in Europe has the potential to destabilize the global economy.”

https://seekingalpha.com/article/4455416-europes-energy-crisis-is-becoming-a-perfect-economic-storm


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Energy Crisis Worsens as Rally Hits Europe’s Industry Giants

“The continent is running out of time to refill its depleted storage sites before the start of the heating season in about a month, with inventories at their lowest level in more than a decade for this time of the year.”

https://www.bloomberg.com/news/articles/2021-09-17/energy-crisis-worsen-as-rally-hurts-europe-s-industrial-giants


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Europe’s car sales go from uninspiring to ugly amid chip crunch…

“”While the pandemic is not over in the region, the single biggest challenge facing the industry is now the auto chip shortage,” LMC Automotive analysts wrote in a report last week.”

https://europe.autonews.com/automakers/europes-car-sales-go-uninspiring-ugly-amid-chip-crunch


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Merkel Leaves the German Economy With Trouble Under the Hood.

“Chancellor Angela Merkel steered Europe through crises, and Germany has boomed during her tenure. But she has ducked changes needed to ensure the success lasts, analysts say.”

https://www.nytimes.com/2021/09/17/business/merkel-economy-germany-elections.html


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China’s Nightmare Evergrande Scenario Is an Uncontrolled Crash…

“Protests intensify at China Evergrande Group offices across the country as the developer falls further behind on promises to more than 70,000 investors. Construction of unfinished properties with enough floor space to cover three-fourths of Manhattan grinds to a halt, leaving more than a million homebuyers in limbo.”

https://www.bloomberg.com/news/articles/2021-09-16/china-s-nightmare-evergrande-scenario-is-an-uncontrolled-crash


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PBOC Injects $14 Billion as Evergrande Debt Woes Roil Market.

“China boosted its injection of short-term cash into the financial system in a sign the authorities are seeking to soothe market nerves frayed by concern over quarter-end funding needs and China Evergrande Group’s debt crisis…

“The operation comes as the crisis facing Evergrande fuels concern over the health of the nation’s real estate and credit markets.”

https://finance.yahoo.com/news/pboc-injects-13-9-billion-031442743.html


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China reveals largest ever drop in monthly steel output as struggling property developers roil markets

“Beijing revealed this week that Chinese steel output dropped by more than 12% in August to 83.2m tonnes, the greatest year-on-year slump since the global financial crisis, according to data from brokers Braemar ACM.”

https://splash247.com/china-reveals-largest-ever-drop-in-monthly-steel-output-as-struggling-property-developers-roil-markets/


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South Korea Presidential Hopeful Warns of Housing Market Crash.

“South Korea’s leading opposition candidate warned of a potential collapse in the housing market and a spike in bankruptcies as interest rates rise, blaming President Moon Jae-in for letting debt levels hit a record through expansionary spending.”

https://finance.yahoo.com/news/south-korea-presidential-hopeful-warns-064926057.html


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Thailand desperate for tourists following COVID slump.

“Bangkok’s tourism industry is reeling under the aftermath of the pandemic and officials want to open more destinations to tourists, despite rising COVID cases.”

https://www.dw.com/en/thailand-desperate-for-tourists-following-covid-slump/a-59174060


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Myanmar Is a Failing State—and Could Be a Danger to Its Neighbors…

“Many banks have little cash and many multinational companies have left Myanmar as trade relations have soured between leading democracies and the country. Myanmar lost 1.2 million jobs in the second quarter of 2021.”

https://www.cfr.org/in-brief/myanmar-failing-state-covid-19-crisis-global-response


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State of emergency declared in Sri Lanka amid economic slump and food shortages

“Sri Lanka has declared a state emergency and deployed its military onto the streets to stop citizens hoarding food, as the ongoing Covid-19 pandemic has exacerbated an existing economic crisis and caused a nationwide shortage of essential goods.”

https://www.telegraph.co.uk/global-health/science-and-disease/state-emergency-declared-sri-lanka-amid-economic-slump-food/


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The Pakistani currency hit an all-time low of Rs 168.94 against the US dollar in the inter bank market on Tuesday in the wake of burgeoning import payments and trade deficit…

Depreciation of rupee is not good news for the consumers already hit hard by the price hike of essential commodities.”

https://www.aninews.in/news/world/asia/as-pakistani-rupee-continues-to-drop-its-central-bank-injects-usd-12-bn-into-inter-bank-market20210915140720/


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Afghanistan’s banks are running out of dollars, and may have to close their doors to customers unless the Taliban government releases funds soon, three people with direct knowledge of the matter said.

“The cash squeeze threatens to upend the country’s already battered economy…”

https://www.reuters.com/world/asia-pacific/running-out-dollars-afghan-banks-ask-taliban-more-cash-2021-09-15/


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[Turkey’s] Erdogan Vows to Tackle Inflation as Food and Rent Prices Soar…

“Inflation rose for a third month to an annual 19.25% in August, but many Turks say that price increases for food and rent have outpaced that. This comes as the government faces eroding support for Erdogan who is seeking re-election in less than two years.”

https://www.bloomberg.com/news/articles/2021-09-16/erdogan-vows-to-tackle-inflation-as-food-and-rent-prices-soar


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Worrying mortgage data highlights the financial state of consumers in South Africa…

“Despite a recovery in the number of credit applications in the first quarter of 2021, an alarming 62.5% of these applications are rejected, indicating that many South Africans are still under considerable financial pressure.”

https://businesstech.co.za/news/banking/521980/worrying-mortgage-data-highlights-the-financial-state-of-consumers-in-south-africa/


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Bushmeat poaching is on the rise in Kenya as Covid hunger drives hunt for antelopes and giraffes…

“”The problem is not looking very good at the moment,” explains KWS Director General John Migui Waweru. He says a lot of otherwise decent-paying job opportunities were lost during the pandemic… “People are desperate,” he says.”

https://edition.cnn.com/2021/09/15/africa/bushmeat-poaching-kenya-cmd-intl/index.html


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As rich-poor divide widens between nations, UN urges reform…

“A new report from the United Nations on Wednesday highlights divergent economic recoveries between nations and throws fresh urgency behind warnings that richer nations are not doing enough to help poorer countries from falling further behind…”

https://www.aljazeera.com/economy/2021/9/15/as-rich-poor-divide-widens-between-nations-un-urges


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The pandemic has widened the chasm between markets and economy.

“A few months into the pandemic, the International Monetary Fund (IMF) had warned that the recovery that follows would be K-shaped. It’s becoming clear global equity markets and economic growth are the two divergent forks in this ‘K’.”

https://www.livemint.com/market/mark-to-market/pandemic-has-widened-the-chasm-between-markets-and-economy-11631727234705.html


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Global debt is soaring — and we need to talk about it…

“…since the world suffered the Great Financial Crisis, which prompted hand-wringing about the dangers of excessive leverage, global borrowing has grown by more than a third.”

https://www.ft.com/content/be32e263-0d55-4df4-a214-855bcad2c60d


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

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