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Wheat Surge to 2012 High Threatens to Speed Up Food Inflation.

“Benchmark wheat in Chicago climbed above $8 a bushel for the first time in almost nine years as importers step up purchases amid adverse weather conditions and soaring fertilizer prices…”

https://www.bloomberg.com/news/articles/2021-11-01/wheat-extends-best-monthly-run-in-14-years-on-importer-demand


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China urges families to stockpile food and essentials amid fears of winter shortages.

“China has urged families to stockpile food and essentials for emergency use, triggering concerns over potential food shortages, even as supply chains have been disrupted due to extreme weather and Covid outbreaks.”

https://www.independent.co.uk/asia/china/china-food-essential-shortage-winters-b1949770.html


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China’s regional economies echo national slowdown in face of ‘grim, complex’ outlook, coronavirus outbreaks.

“Sporadic coronavirus outbreaks and a “grim and complex” external environment continued to weigh on China’s regional economic growth rates during the first three quarters of the year with almost two thirds falling below the national average.”

https://www.scmp.com/economy/china-economy/article/3154581/chinas-regional-economies-echo-national-slowdown-face-grim


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China said it has increased daily coal production by over one million tonnes, easing its energy shortage as world leaders gather in Britain for climate talks billed as one of the last chances to avert catastrophic global warming.

“The world’s biggest coal importer has battled widespread power cuts in recent months that have disrupted supply chains…”

https://www.france24.com/en/live-news/20211102-china-eases-power-crunch-with-boost-to-coal-production


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China Developer Debt Slump Is Engulfing Even High-Rated Issuers.

“The worst selloff of China property developer debt in a decade has been spreading in recent weeks to investment-grade giants, injecting volatility into what had been some of the most staid investments in the industry.”

https://www.bloomberg.com/news/articles/2021-11-02/china-developer-debt-slump-is-engulfing-even-high-rated-issuers


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China-linked Park Avenue skyscraper files for bankruptcy in lease spat…

“Three years ago, HNA listed the Manhattan property among the assets that it was putting up for sale as it marketed more than $40 billion of its holdings to cut its debt load. At the time, the building was valued by the company at $2.2 billion.”

https://www.crainsnewyork.com/commercial-real-estate/hna-linked-park-ave-skyscraper-files-bankruptcy-lease-spat


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Americans grow pessimistic on the economy as high inflation lingers…

“Nearly two-thirds of Americans describe the economy as poor in a new poll that comes amid high inflation and supply chain turmoil… That’s down from 45% in September.”

https://edition.cnn.com/2021/11/02/economy/economy-inflation-poll/index.html


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US airlines weigh seat sales against staff shortages as holidays loom…

“The common denominator is a tight labour market that has affected the broad US economy, but is particularly acute for airlines that encouraged staff to take early retirement or voluntary leave when traffic collapsed last year.”

https://www.ft.com/content/9ea2809d-52fa-45bf-b855-e71a21906000


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Oil Driller Diamondback Braces for 10% Price Shock in Shale Sector…

“Diamondback dropped a bombshell on a Tuesday morning conference call… Diamondback Energy has said it will not increase its crude oil production next year despite the surge in prices.

https://www.bloomberg.com/news/articles/2021-11-02/shale-driller-diamondback-sees-10-cost-inflation-in-2022


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Farmers [in the UK] threaten to stop planting crops if supermarkets don’t raise prices.

“Fruit and vegetable growers have warned supermarkets that next year’s crops will not be grown unless they drop their opposition to price increases, amid rising tensions over who foots the bill for soaring inflation.”

https://www.thetimes.co.uk/article/farmers-threaten-to-stop-planting-crops-if-supermarkets-dont-raise-prices-mn2w8669m


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A third of Scotland’s largest brassica crop has been left to rot in the field because Brexit ended access for seasonal pickers.

“Costs will rise next year and production will shrink as a result, farmers predict. Meanwhile, empty shelves are causing problems for rural Scots.”

https://www.thenational.scot/news/19684246.brexit-leads-catastrophic-failure-warning-scotland-crops-left-rot/


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Poor Britons caught in ‘perfect storm’ amid cost-of-living squeeze.

“Mortgage rates are rising, fuel and grocery prices soaring, national insurance contributions are going up as queues grow at charity food banks across Britain.”

https://www.dailysabah.com/business/economy/poor-britons-caught-in-perfect-storm-amid-cost-of-living-squeeze


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Four more energy suppliers are set to stop trading from today due to UK’s energy crisis, which brings the total of collapsed firms to 18.

“Omni Energy, MA Energy, Zebra Power, and Ampoweruk leave some 23,700 domestic and non-domestic customers awaiting a new supplier…”

https://www.cityam.com/four-more-suppliers-collapse-as-uk-energy-crisis-shows-no-sign-of-improving/


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Europe Fears That Rising Cost of Climate Action Is Stirring Anger.

“…surging energy prices have complicated Europe’s lofty [climate] goals, leaving governments scrambling to offset the impact on households as signs popular discontent rise.”

https://www.nytimes.com/2021/11/01/business/energy-environment/europe-climate-action-cost.html


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Russia keeps Europe waiting on new gas supplies.

“Russia’s Gazprom declined to book extra capacity to ship more gas to Europe from January at auctions on Tuesday, a step that would have helped ease prices in a market haunted by worries about Moscow’s intentions.”

https://www.reuters.com/business/energy/gazprom-fails-book-more-gas-transit-europe-despite-kremlin-reassurance-2021-11-02/


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Romania’s political logjam deepens crises over pandemic and energy.

“…an energy company collapsed in the Romanian city of Timisoara, leaving thousands of homes and some hospitals without heating or hot water as night-time temperatures neared freezing point…”

https://www.ft.com/content/b8598fff-a222-40b6-86c0-1fbc60df0b6f


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Ukraine is pinning its hope on nuclear generation to meet winter demand as the country stopped receiving coal supply from Russia on Monday, according to the country’s energy committee.

Russia stopped coal supplies to Ukraine on Monday just as gas transit through the country fell to 57 mcm, or half of its daily contracted volumes…. Market sources interviewed by ICIS said the country was under “immense pressure” to align politically.”

https://www.icis.com/explore/resources/news/2021/11/01/10700745/russian-coal-supply-to-ukraine-halts-amid-deepening-energy-crisis


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Algeria cuts off gas to Morocco as spat continues. Algeria cut off a gas supply to neighbouring Morocco today, the country’s president said…

““Due to Morocco’s hostile acts towards Algeria, undermining national unity, the president has ordered the oil company Sonatrach to cut off trade relations with the Moroccan electricity company ONEE,” a statement confirmed.”

https://morningstaronline.co.uk/article/w/algeria-cuts-gas-morocco-spat-continues


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Soaring Food Prices in Algeria Spark Major Concerns Amid Economic Crisis.

“The report shows that due to a chronic shortage of basic alimentary products, Algeria is turning to imports to satisfy the increasing consumer demand.”

https://www.moroccoworldnews.com/2021/11/345302/soaring-food-prices-in-algeria-spark-major-concerns-amid-economic-crisis


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Mexican peso leads Latam FX losses on fears of slowing growth…

“Data last week showed Mexico’s first economic contraction since a recovery began from the coronavirus pandemic, posing a challenge to the central bank’s monetary policy tightening cycle amid stubbornly high inflation, which analysts see taking precedence.”

https://www.reuters.com/article/emerging-markets-latam/emerging-markets-mexican-peso-leads-latam-fx-losses-on-fears-of-slowing-growth-idUSL1N2RS1PN


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The Brazilian economy is likely to enter next year with a growing risk of recession, which is set to impact President Jair Bolsonaro’s goal to be reelected in the October elections.

“The recent weeks have seen economists make downward revisions to their 2022 GDP forecasts for Latin America’s largest economy…”

https://www.bnamericas.com/en/analysis/why-brazil-could-be-heading-for-recession-in-2022


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Pakistan’s inflation up 9.2pc in Oct on energy, food spike

“Consumer inflation accelerated in October as fuel and food prices rose at a higher pace, putting more pressure on the central bank to tame prices amid a lingering economic recovery.”

https://www.thenews.com.pk/print/905130-inflation-up-9-2pc-in-oct-on-energy-food-spike


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She was sold to a stranger so her family could eat as Afghanistan crumbles.

“Parwana Malik, a 9-year-old girl with dark eyes and rosy cheeks, giggles with her friends as they play jump rope in a dusty clearing. But Parwana’s laughter disappears as she returns home… where she’s reminded of her fate: she’s being sold to a stranger as a child bride.”

https://edition.cnn.com/2021/11/01/asia/afghanistan-child-marriage-crisis-taliban-intl-hnk-dst/index.html


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Yemeni Prime Minister, Maeen Abdulmalik, yesterday called for “urgent international support to avoid an economic collapse.”

“…The Yemeni government is working hard to mitigate the repercussions of the decline in the local currency, and curb the rising inflation and weak purchasing power,” Abdulmalik stressed.”

https://www.middleeastmonitor.com/20211102-yemen-calls-for-urgent-international-support-as-economy-collapses/


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‘It’s difficult to feed our families’: Volatile cocoa prices are pushing West African farmers further into poverty.

“Volatility in cocoa markets means farmers in Africa are set to lose almost 20% of their incomes, prompting accusations that global chocolate makers are “turning a blind eye” to serious problems in the sector.”

https://www.cnbc.com/2021/11/02/volatile-cocoa-prices-are-pushing-african-farmers-further-into-poverty.html


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Sugar Prices Soar as Energy Crisis Boosts Ethanol Output.

“The global energy crunch is putting pressure on the sugar market as the world’s top exporters convert more cane into ethanol.”

https://www.bloomberg.com/news/articles/2021-11-01/energy-crisis-pressures-sugar-market-as-ethanol-output-booms


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How Car Shortages Are Putting the World’s Economy at Risk.

“Turmoil in the auto industry, a powerful engine of the global economy, is threatening growth and sending tremors through companies and communities that depend on carmakers for money and jobs.”

https://www.nytimes.com/2021/11/02/business/car-shortage-global-economy.html


Japan’s automobile sales slumped 31.3% in October from a year earlier to mark the fourth straight month of declines, industry data showed on Monday, a sign output cuts caused by the COVID-19 pandemic were hurting the country’s already weak consumption.”

https://www.reuters.com/business/autos-transportation/japans-auto-sales-slump-clouds-prospects-consumption-rebound-2021-11-01/


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Battery Costs Are Soaring Amid A Global Supply Crunch.

Cheap batteries have been the key factor for the mass adoption of electric cars for a while now. Until recently, battery costs were on a steady downward curve as technology improved and efficiency increased. But then the pandemic came and wrought havoc on every single industry and supply chain.”

https://oilprice.com/Energy/Energy-General/Battery-Costs-Are-Soaring-Amid-A-Global-Supply-Crunch.html


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Italian bond sell-off signals rising angst over ECB backing of riskier debt.

“Eurozone bonds have been swept up in a global debt sell-off over the past week as traders bet that persistently high inflation will force the ECB to lift interest rates from record lows as soon as next year.”

https://www.ft.com/content/f75b8764-d962-488b-b89f-e2c600fbedc2


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Stagflation is coming: central banks and governments are right to be terrified…

“It scarcely needs saying that [higher] borrowing costs… would be a hammer blow to the UK’s inflated housing market, and to the economy at large, pushing it deep into recession. We’ve grown addicted to cheap money; interest rate therapy of such size would be the economic equivalent of cold turkey.”

https://www.telegraph.co.uk/business/2021/11/02/stagflation-coming-central-banks-governments-right-terrified/


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Bond Whiplash Raises Risk of a Financial Market Accident.

“A dramatic shift in inflation sentiment has caused turbulence in real yields and breakevens, threatening losses for leveraged investors.”

https://www.bloomberg.com/opinion/articles/2021-11-02/bond-whiplash-raises-risk-of-a-financial-market-accident


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

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