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China electricity shortage: industrial production grinds to halt and traffic lights fail amid rationing.

“Half of China’s provincial jurisdictions mandate rationing of electricity, but poor communication and unclear timeline leave angry public in the dark. One local government warns that entire power grid at risk of collapse if electricity is not rationed.

https://www.scmp.com/economy/china-economy/article/3150315/china-electricity-shortage-industrial-production-grinds-halt


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China energy crunch triggers alarm, pleas for more coal.

“As a severe power crunch roils China’s northeastern industrial heartland, senior officials face mounting pressure from alarmed citizens to ramp up coal imports thick and fast in order to keep lights on, factories open and even water supplies flowing.

https://www.reuters.com/world/china/china-energy-crunch-triggers-alarm-pleas-more-coal-2021-09-28/


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China’s coal shortage could leave other countries in the dust.

China is in dire need of more coal, and it’s willing to pay ‘any price’ to secure more of the world’s dirtiest fossil fuel – which means other countries risk literally being left in the coal dust.”

https://www.aljazeera.com/economy/2021/9/28/chinas-coal-shortage-could-leave-other-countries-in-the-dust


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India’s coal stockpile dangerously low as inventories dry up, lowest since November 2017.

“The short supply may force plants to buy expensive imported coal or pay hefty premiums at domestic auctions, and raise costs across an economy already battling high fuel prices.”

https://theprint.in/economy/indias-coal-stockpile-dangerously-low-as-inventories-dry-up-lowest-since-november-2017/741284/


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Mining meltdown: Iron ore price slump sends shockwaves through industry as fall in demand from China catches market by surprise…

The price of this vital steel-making ingredient is highly volatile. But the speed and scale of the slump, driven by falling demand for steel from China, has caught the market by surprise.”

https://www.thisismoney.co.uk/money/markets/article-10038781/Mining-meltdown-Iron-ore-price-slump-sends-shockwaves-industry.html


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China tightens abortion controls as population crisis looms.

“China is tightening controls over abortions for “non-medical purposes” as policymakers heap pressure on women in their battle to counter a demographic crisis.”

https://www.ft.com/content/823378bf-af1f-41bd-b228-354b274d1542


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Evergrande: Struggling firm to raise $1.5bn as debt payment looms.

“Chinese property giant Evergrande has said it is selling a $1.5bn (£1.1bn) stake it owns in a commercial bank, as it scrambles to raise money owed to customers, investors and suppliers. The almost 20% stake in state-owned Shengjing Bank is effectively being bought back by the bank.”

https://www.bbc.co.uk/news/business-58729791


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China Hidden Local Government Debt Is Half of GDP, Goldman Says.

“China’s hidden local government debt has swelled to more than half the size of the economy, according to economists at Goldman Sachs Group Inc., who said the government will need to be flexible in dealing with this as revenue is already under pressure due to a slowdown in land sales.”

https://www.bloomberg.com/news/articles/2021-09-29/china-hidden-local-government-debt-is-half-of-gdp-goldman-says


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China is banning the export of phosphate, a major component of commercial fertilizer, through 2022 [not good for food prices, of course!]

““Fertilizer prices have increased dramatically in recent years, and the news coming from China will more than likely help this trend continue,” said Theresa Sisung, field crops specialist for the Michigan Farm Bureau.”

https://www.wisfarmer.com/story/news/2021/09/28/china-halts-phosphate-exports-fertilizer-prices-expected-soar/5907300001/


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U.K. Fuel Panic Deepens the Pain in Crisis-Prone Economy.

“Major U.K. industries from food processing to utilities were already reeling from the effects of Brexit, a supply-chain crisis and record surge in energy prices. The sudden disruption to road-fuel supplies threatens to spread that pain even deeper into the economy, leaving small businesses, care workers and taxi drivers unable to do their jobs.”

https://www.bloomberg.com/news/articles/2021-09-27/u-k-road-fuel-panic-deepens-the-pain-in-crisis-prone-economy


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Surge in UK wholesale gas prices fuels winter energy crisis fears [we have to hope we have an unusually mild winter, although with La Nina brewing that may not happen].

“Wholesale gas prices have reached new all-time highs, stoking concern that a cold winter could deepen a crisis that has led to the collapse of multiple energy suppliers and raised fears of factory shutdowns and soaring bills.”

https://www.theguardian.com/business/2021/sep/28/uk-wholesale-gas-prices-highs-winter-energy-crisis-suppliers


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European Energy Prices Surge to Records as Supply Crisis Spreads. European energy markets from natural gas to carbon permits jumped to records early on Tuesday as the shortage of supplies will only get worse just as the winter season starts.

“Stocks of everything from natural gas to coal and Norwegian water for electricity production are dwindling…”

https://www.bloomberg.com/news/articles/2021-09-28/european-energy-prices-surge-to-records-as-supply-crisis-worsen


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Gas-Starved Europe Can’t Look West as U.S. Faces Its Own Crunch.

“… for a multitude of reasons, U.S. shale is in no position to bail out Europe. Indeed, supplies are so tight that Americans are staring down their own supply squeeze and the accompanying sky-high utility bills.

https://finance.yahoo.com/news/gas-starved-europe-cant-look-140009958.html


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U.S. consumers are gloomy about their finances and that means a recession could be near.

“It’s a bad sign that U.S. consumers are more optimistic about the overall economy than they are about their own finances. That’s because similar discrepancies in the past often presaged a recession.”

https://www.marketwatch.com/story/u-s-consumers-are-gloomy-about-their-finances-and-that-means-a-recession-could-be-near-11632815496


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Venezuelan migrants in Chile face fiery anti-immigration protests.

“On the weekend thousands of local Chileans marched with anti-immigration slogans and set fire to belongings of Venezuelan migrants, tossing clothes and mattresses in bonfires in the street, after a camp was cleared by police on Friday.”

https://www.nbcnews.com/news/latino/venezuelan-migrants-chile-face-fiery-anti-immigration-protests-rcna2358


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Bolivia coca farmers battle for control as protests turn violent.

“Bolivia’s coca farmers are battling for control of the leaf’s main market in the highland city of La Paz, a conflict which has seen producers and police clash in the streets with slingshots and tear gas, and even a building set on fire.”

https://www.reuters.com/world/americas/bolivia-coca-farmers-battle-control-protests-turn-violent-2021-09-28/


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Vietnam posts record GDP slump in Q3 due to COVID-19 curbs.

“Vietnam’s gross domestic product contracted 6.17% in the third quarter of 2021 from a year earlier as pandemic restrictions hit, the sharpest quarterly decline on record, government data released on Wednesday showed.”

https://www.reuters.com/world/asia-pacific/vietnam-posts-record-gdp-slump-q3-due-covid-19-curbs-2021-09-29/


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Myanmar’s junta powerless as currency drops 60% in four weeks, economy tanks.

“Myanmar’s currency has lost more than 60% of its value since the beginning of September in a collapse that has driven up food and fuel prices in an economy that has tanked since a military coup eight months ago.”

https://www.reuters.com/world/asia-pacific/myanmars-junta-powerless-currency-drops-60-four-weeks-economy-tanks-2021-09-29/


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Afghanistan’s financial system is about to collapse, lender warns, as the US keeps nearly $10 billion in reserves frozen from the Taliban…

“Syed Moosa Kaleem Al-Falahi, the chief executive of the Islamic Bank of Afghanistan, told the BBC that Afghanistan’s financial industry was dealing with an “existential crisis.””

https://www.yahoo.com/news/afghanistans-financial-system-collapse-lender-092046617.html


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Pakistan’s dependence on natural gas is turning into a nightmare…

“The surge in global gas prices due to shortages in Europe has pushed Asian LNG to records for the time of year. That’s forced Pakistan to pay the most ever for spot shipments to top up supply under long-term contracts, or even forgo them altogether.”

https://www.aljazeera.com/economy/2021/9/28/pakistans-dependence-on-natural-gas-is-turning-into-a-nightmare


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Pakistan’s Rupee hits fresh record low of 169.97 [against the $]…

“The research house has revised its expectations following the deepening financial crisis in Afghanistan and spike in commodity prices in international markets. The situation would increase demand for dollars in the domestic economy.”

https://tribune.com.pk/story/2322458/rupee-hits-fresh-low-of-16997


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Rising food prices could ignite unrest, instability in Nigeria, other African countries…

“The pain could be particularly acute in Africa, where purchasing power and social safety nets are limited, and discontent with underperforming governments is simmering. Current conditions – supply chain disruptions, climatic shocks, rapid spikes in commodity prices and lockdowns – have created fertile ground for unrest.”

https://www.premiumtimesng.com/features-and-interviews/487074-analysis-rising-food-prices-could-ignite-unrest-instability-in-nigeria-other-african-countries.html


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Why global food prices are higher today than for most of modern history… Global food prices shot up nearly 33% in September 2021 compared with the same period the year before…

“Based on real prices, it is currently harder to buy food on the international market than in almost every other year since UN record keeping began in 1961.”

https://theconversation.com/why-global-food-prices-are-higher-today-than-for-most-of-modern-history-168210


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The world economy is facing a buildup in stagflationary forces as surging energy prices boost inflation and slow the recovery from the pandemic recession.

Oil’s climbed to more than $80 a barrel for the first time in three years… Food prices are also advancing, driven in part by crop failures in Brazil, with a benchmark UN index up 33% over the past 12 months.”

https://www.bloomberg.com/news/articles/2021-09-28/commodity-price-surge-deals-stagflationary-blow-to-world-economy


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Inflation and Supply Shortages Are Waking Up the Bond Bears.

“Central bankers continue to insist that the recent price pressures that are driving inflation higher will prove temporary. But based on what’s happening to bond yields and in the inflation swaps market, investors are growing less convinced. Something’s got to give.

https://www.bloomberg.com/opinion/articles/2021-09-29/inflation-and-supply-shortages-raise-prices-awaken-bond-bears-drive-up-yields


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Is the world hurtling towards a debt bubble burst?

“…the threat to the global economy from a debt bubble blow out is still a live issue.”

https://gulfnews.com/business/analysis/is-the-world-hurtling-towards-a-debt-bubble-burst-1.82598681


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

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