• Facebook
  • Twitter
The sharp global rebound from the coronavirus recession “appears in danger of stalling” amid supply bottlenecks, surging energy prices and rising inflation, according to an exclusive research for the Financial Times

“The findings indicate that policymakers will no longer simply be able to boost spending power without serious risks.

““Policymakers in many major economies now face the difficult conundrum of supporting growth while keeping inflation under control, even as they continue to be hit by domestic and external supply disruptions,” said Eswar Prasad, senior fellow at the Brookings Institution.

““Additional stimulus measures, especially monetary easing, are likely to yield an increasingly unfavourable trade-off between short-term benefits and longer-term vulnerabilities.””

https://www.ft.com/content/5b0bf589-bfee-429e-8e64-3c2ea69b7262


  • Facebook
  • Twitter
Crude jumps on global energy crunch; U.S. oil at 7-year high.

“Oil prices surged again on Monday, extending multiweek gains as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers.”

https://www.reuters.com/business/energy/oil-gains-energy-demand-rises-wti-tops-80-2021-10-11/


  • Facebook
  • Twitter
As US debt piles up, what happens if faith in Treasuries is shaken?

“…As central banks start to diversify away from Treasuries and markets reassess their positions, the risk is that Treasury yields could soar, igniting inflation amid tottering debt.”

https://www.scmp.com/comment/opinion/united-states/article/3151663/us-debt-piles-what-happens-if-faith-treasuries-shaken


  • Facebook
  • Twitter
EMS services warn of ‘crippling labor shortage’ undermining 911 system…

“The pandemic-induced shortage of emergency medical technicians and paramedics nationwide is so dire that ambulance service providers warn of sharp cuts to services and longer waits for 911 calls — even when it’s a matter of life or death.”

https://www.nbcnews.com/news/us-news/ems-services-warn-crippling-labor-shortage-undermining-911-system-rcna2677


  • Facebook
  • Twitter
Ministers are being warned of a mounting workforce crisis in England’s hospitals as they struggle to recruit staff for tens of thousands of nursing vacancies, with one in five nursing posts on some wards now unfilled.

“Hospital leaders say the nursing shortfall has been worsened by a collapse in the numbers of recruits from Europe, including Spain and Italy.”

https://www.theguardian.com/society/2021/oct/09/nursing-crisis-sweeps-wards-as-nhs-battles-to-find-recruits


England’s health chief ‘significantly’ worried about flu this winter as ‘worst cold ever’ spreads across UK. Professor Jonathan Van-Tam issued the warning as he called on everyone to get the flu jab when it is offered to them.”

https://www.examinerlive.co.uk/news/uk-world-news/englands-health-chief-significantly-worried-21815897


  • Facebook
  • Twitter
[UK] People will have to get used to higher food prices, the boss of Kraft Heinz has told the BBC.

“Miguel Patricio said the international food giant, which makes tomato sauce and baked beans, was putting up prices in several countries. Unlike in previous years, he said, inflation was “across the board”.”

https://www.bbc.co.uk/news/business-58847275


  • Facebook
  • Twitter
UK food shortages: Supermarkets may start rationing meat ahead of Christmas amid gas crisis.

“As well as driving up household bills, surging gas prices are negatively impacting food production.”

https://inews.co.uk/inews-lifestyle/food-and-drink/food-shortages-gas-crisis-supermarkets-meat-rationing-christmas-1242061


  • Facebook
  • Twitter
A large gas refinery in the Far East of Russia has been shut down after a fire erupted at the site early on Friday morning….

“…as supply to Amur Gas Processing plant – Russia’s largest gas processing plant in the Far East, supplying China via the Power of Siberia pipeline – and all works have been suspended

https://www.energyvoice.com/oilandgas/355074/major-russian-gas-plant-shut-down-following-fire/


  • Facebook
  • Twitter
China’s coal futures hit all-time high as floods [in Shanxi] worsen energy crisis.

“Chinese coal futures rose to record levels as floods shut dozens of mines and displaced more than 100,000 people, throttling the country’s main source of the fuel for electricity and compounding a global energy crisis.”

https://www.ft.com/content/2b986dca-bfdb-48f7-ba37-4a5e9a3d1412


  • Facebook
  • Twitter
Evergrande faces fresh debt deadline as property market woes widen.

“Financial markets were braced for more bad news about the shaky Chinese property market as struggling giant Evergrande looked set to miss a fresh round of debt repayments worth $148m, and another developer pleaded for more time to repay what it owes.”

https://www.theguardian.com/world/2021/oct/11/evergrande-faces-fresh-debt-deadline-as-property-market-woes-widen


  • Facebook
  • Twitter
The Chinese developer behind a massive Australian apartment project plagued by poor workmanship is struggling to repay debts, putting owners at risk of huge losses.

“Yunnan Metropolitan Construction Investment Australia’s ambitious $5billion Ovation Quarter project in western Sydney, which planned for 4,500 units, has come under ASIC scrutiny over company ‘deficits’…”

https://www.dailymail.co.uk/news/article-10074723/Chinese-developer-defect-plagued-apartment-project-collapse-leaving-homeowners-scared.html


  • Facebook
  • Twitter
Firefighters battle blaze at southern Lebanon fuel storage tank.

“The facility at Zahrani, around 8 km (5 miles) south of the city of Sidon, houses one of the country’s main power stations… The country has been suffering dire power and gasoline shortages as a result of its economic and financial meltdown.”

https://www.reuters.com/world/middle-east/lebanons-al-jadeed-tv-reports-fire-near-zahrani-oil-facility-2021-10-11/


  • Facebook
  • Twitter
Fertilizer Index Hits Record, Threatening Higher Food Prices.

“The Green Markets North America Fertilizer Price Index rose 7.9% to $996.32 per short ton, soaring past its 2008 peak to set a new benchmark for the index that began in January 2002.”

https://finance.yahoo.com/news/fertilizer-index-hits-record-threatening-161053467.html


  • Facebook
  • Twitter
Cotton prices just hit a 10-year high… Cotton prices surged to a 10-year high on Friday, reaching $1.16 per pound and touching levels not seen since July 7, 2011.

““In 2011, we needed a prayer meeting,” Levi Strauss Chief Executive Chip Bergh told investors on an earnings call Wednesday…”

https://www.cnbc.com/2021/10/10/cotton-prices-hit-10-yr-high-what-it-means-for-retailers-and-shoppers.html


  • Facebook
  • Twitter
Copper Bulls Get Electric Shock as World’s Factories Slow Down.

“As a reliable gauge of economic health, copper is fast becoming a canary in the coal mine for analysts and academics, who fear that the surging costs of natural gas and electricity will send markets reeling.”

https://www.bloomberg.com/news/articles/2021-10-11/copper-bulls-get-electric-shock-as-world-s-factories-slow-down


  • Facebook
  • Twitter
As stocks soar to historical highs, some experts say conditions ripe for correction…

“…historical patterns and the precariousness of present market conditions have some economists warning that current growth rates may be unsustainable, especially amid inflation worries and potential tightening by the Fed of monetary policy.”

https://abcnews.go.com/Business/stocks-soar-historical-highs-experts-conditions-ripe-correction/story?id=80303849


  • Facebook
  • Twitter
Is the global asset bubble about to burst?

“…The global economy faces a number of severe challenges right now, including “US-China trade tensions, gathering inflation, tighter monetary policy, supply-side bottlenecks and record high global debt”, says Russ Mould, investment director at AJ Bell.”

https://www.thenationalnews.com/business/money/2021/10/11/is-the-global-asset-bubble-about-to-burst/


Will October again be memorable for wrong reasons as economic risks build? Bad things happen in this month and, as IMF prepares for annual meeting, signs of a crisis loom.

https://www.theguardian.com/business/2021/oct/10/will-october-again-be-memorable-for-wrong-reasons-as-economic-risks-build


  • Facebook
  • Twitter
2008 called. It wants its recession back… For much of this year, I have argued that the best analogy for markets is the great 2015 deflation…

“…[However] a closer analogy for markets now appears to 2008. Do I mean a new GFC? No. I mean an energy and inflation bubble and bust so large that it does material damage to global growth.

https://www.macrobusiness.com.au/2021/10/2008-called-it-wants-its-recession-back/


  • Facebook
  • Twitter
An economic storm is brewing ahead of Glasgow and Christmas

“Put an increasingly global energy crisis together with the severe supply chain disruption… and already-elevated inflation rates and the prospect that the recovery from the pandemic will be choked off, the fear that inflation will become entrenched and force interest rates to rise – even as economies slow – looms larger.”

https://www.smh.com.au/business/markets/an-economic-storm-is-hovering-ahead-of-glasgow-and-christmas-20211011-p58yxo.html


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

If you found value in this content, please help me continue this work by becoming a patron of my work via Patreon. And if you are already a subscriber or have donated – thank you! It means a lot.

Share This

Share this post with your friends!