“Alarm bells are ringing unheeded in a world yearning for optimism… Investors have waved through deal after risky deal this year as they look for places to park their cash.
“The lending has been mammoth, swelling the US corporate bond market to nearly $11tn — more than a tenth bigger than it was at the end of 2019 before the Covid-19 pandemic, according to Sifma, the securities industry’s trade group. But the terms at which these money managers have agreed to lend have been astonishingly poor.
“Credit rating agencies are already warning the seeds of the next crisis, or at least the next default cycle, are being sown today. The pain will be particularly acute in the junk bond and leveraged loan market…”
https://www.ft.com/content/1cba68a5-b776-4dcd-9499-14c11638dbba
“Unease about [global] economic outlook grows as rising prices fuel stagflation concerns…
“Concerns about the regulatory environment in China, soaring energy prices, debates about whether inflation is transitory or persistent, how much the global economy is slowing, and whether central banks can …taper, is increasingly keeping investors nervous, and that uncertainty appears to be growing…”
“The Fed’s Time Is Running Out for a Timely Taper.
“The central bank should start pulling back on its $120 billion monthly bond purchases and signal when it will lift rates, but it probably won’t.”
“Crunch time for Biden’s economic plan: ‘Failure is not an option’…
“The haggling in Congress this month over ambitious spending bills will be a defining moment for his presidency…
“We’ve set a goal, and the goal is achievable. I promise you, I promise you,” the president said…
https://www.ft.com/content/5e3defde-3260-4e61-9ecd-b142b30d1a69
“The Global Housing Market Is Broken, and It’s Dividing Entire Countries.
“The dream of owning a home is increasingly out of reach. Democratic and authoritarian governments alike are struggling with the consequences.”
“UK property prices hit all-time high.
“The national average price of properties coming to market in the UK hit an all-time high, Rightmove’s latest house price index revealed, as fierce competition among buyers for the record low number of available properties for sale continues.”
https://ph.news.yahoo.com/properties-coming-to-market-in-uk-hit-all-time-high-230115982.html
“Mounting fears of a 1970s-style three-day week as Britain’s energy crunch deepens… The cost squeeze threatens to abort the economic recovery just as the furlough scheme winds down and fiscal stimulus fades.
“In a worst case scenario it could lead to systemic havoc akin to the industrial paralysis and candle-lit evenings endured in the 1970s… The UK is now at the mercy of global events… Downing Street can only hold its breath, and hope.”
“UK Taxpayers face multibillion-pound bill to bail out failing energy firms, soaring bills and empty supermarket shelves – amid fears dozens of gas companies could go to the wall in gas supply crisis…
“Ministers are in talks with energy companies over a bailout that could help the beleaguered sector…”
“Sterling under threat from stagflation bets… It has been frenetic since the Brexit vote, proving vulnerable as Britain thrashed out its new relationship with the European Union.
“The moves were extreme enough that sterling was repeatedly compared to emerging market currencies in terms of volatility.”
https://www.telegraph.co.uk/business/2021/09/19/sterling-threat-stagflation-bets/
“A fresh protest over post-Brexit rights for fishing vessels to access Jersey’s waters has been held in France.
“More than 100 fishermen gathered on Armanville beach in Normandy on Saturday, where the power cable which supplies the Channel Island lands.”
https://www.bbc.co.uk/news/world-europe-jersey-58610215
“France cancels defence summit with UK in protest at Aukus submarine deal…
“Florence Parly, the French minister of the armed forces, personally took the decision to drop the bilateral meeting that was due to be held in London this week, sources told Reuters.”
https://www.independent.co.uk/news/uk/politics/france-uk-meeting-aukus-submarine-b1923069.html
“Europe Faces Bleak Winter Energy Crisis Years in the Making.
“Faced with surging gas and electricity prices, countries… will need to count on mild temperatures to get through the heating season. Europe is short of gas and coal and if the wind doesn’t blow, the worst-case scenario could play out: widespread blackouts that force businesses and factories to shut.”
“Europe Faces Worst Corporate Credit Supply Shortfall Since 2005.
“Dwindling supply will typically limit liquidity in credit markets, making the pricing of risk more challenging. The issue is already prevalent in Europe’s sovereign bond market…”
“The editor-in-chief of state-backed Chinese newspaper Global Times warned debt-ridden property giant Evergrande that it should not bet on a government bailout on the assumption that it is “too big to fail”.
“It was the first commentary to appear in state-backed media casting doubt on a government bailout for the country’s No.2 property developer…”
“Shares in China’s Evergrande plunge again as fears of contagion grow…
“Shares in the embattled Chinese property company Evergrande have plunged again as investors weigh up whether the group’s massive debt problems could trigger a broader sell off across all financial markets.”
“Iron ore tumbles 22% in worst week since 2008 financial crisis… as Chinese steel mills dumped the commodity in response to government production curbs and a cooling property market…
“The steelmaking raw material, which hit a record high above $230 a tonne in May, traded at $100.80 on Friday, down 22 per cent over the week…”
https://www.ft.com/content/fc874d0a-33af-4f49-a6c8-4a812422269d
“The perfect storm of the Chilean economy.
“Economists from different political sectors agree that the problem lies in a disorderly way out of the pandemic crisis, due to the great impact of the consecutive withdrawals of pension funds on the financial system.”
https://marketresearchtelecast.com/the-perfect-storm-of-the-chilean-economy/159725/
“European Union-style bloc pitched for Latin America, Caribbean…
“Bolivian President Luis Arce called on Saturday for a global agreement to lower debts for poor countries at a diplomatic summit in Mexico, as he and other heads of state seek to boost a new Latin American and Caribbean diplomatic block.”
“Costa Rica warns of unrest in developing world without more Covid aid…
“Developing countries are at risk of sliding into instability under the weight of the pandemic without more financial support from richer nations and the IMF, Costa Rica’s president has warned.”
https://www.ft.com/content/d36b7d10-559e-4742-a1e0-0a023cb23cb2
“The Bahamas and Trinidad and Tobago have been fingered as the next two Caribbean countries expected to default on their sovereign debt, with widespread repercussions for their economies, populations, creditors and, eventually, the corrective policy prescriptions that are likely to come to bailout vehicles such as the International Monetary Fund (IMF).”
https://jamaica-gleaner.com/article/business/20210918/caribbean-debt-default-warning
“Puerto Rico’s progress still stalled four years after Maria.
“Some of the most important reconstruction work, like modernizing the electric grid, hasn’t begun as the U.S. territory faces a critical phase in restructuring its debt.”
https://www.nbcnews.com/news/latino/puerto-rico-four-years-hurricane-maria-far-recovery-rcna2073
“‘South Africa’s ruling African National Congress is riven by factionalism and “thugs and gangsters” have infiltrated the process for selecting electoral candidates, according to an internal report cited by the City Press newspaper…
“Campaigning has been hit by violent disputes between supporters of rival candidates and money woes that left ANC staff unpaid for three months.”
“Nigeria’s Worst Security Crisis…
“We hide behind the cliché that… we are in an economic recession, when the reality – unacceptably high rate of unemployment, unacceptably high crime rates, untold insecurity and killings, unacceptable inflation rates alongside low growth, unacceptable poverty, disease and hunger – show that we are at least in an economic depression, if not worse.”
https://allafrica.com/stories/202109200079.html
“Dueling Tunisian protests erupt over president’s power grab…
“The protest, accompanied by a heavy police presence, was the first since Saied declared on July 25 he was sacking the prime minister, suspending parliament, and assuming executive authority.”
“Lebanon crisis: Father of girl with cancer says economic crisis is hitting hospitals and food supplies: ‘There’s no money and no work’.
“The crisis affecting the healthcare system is a symptom of a much wider crisis… compounded by corruption and bad governance. The UN estimates that 78% of Lebanon’s population is now living in poverty, leaving some scavenging for whatever they can find.”
“Honda says Japan output 60% below plan on parts shortage.
“The automaker expects the impact to extend beyond this month and said production in early October will also fall short of initial expectations.”
https://www.autonews.com/manufacturing/honda-says-japan-output-60-below-plan-parts-shortage
“Fake chips slipping into supply chain, industry insiders warn…
“TOKYO — Electronics makers grappling with an unprecedented global chip crunch are increasingly turning to unconventional supply channels to meet their needs — and many are getting stuck with knock-off, substandard or reused semiconductors.”
“The computer chip industry has a dirty climate secret…
“The industry presents a paradox. Meeting global climate goals will, in part, rely on semiconductors. They’re integral to electric vehicles, solar arrays and wind turbines. But chip manufacturing also contributes to the climate crisis. It requires huge amounts of energy and water.. and creates hazardous waste.”
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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Great work! My favorite compilation site prior was “Rice Farmer” your site is much better. Thank you !
Nemo, thank you! Best wishes, JP