“Investors brace for the highest [US] inflation reading in nearly 40 years.
“If the consensus is correct, the last time inflation was this high was in the early years of the Reagan administration – as the U.S. found itself amid a steep and persistent recession… What the market will care about is just how hot the level is, and what reaction it might trigger from the Federal Reserve.”
“A new report from Earth Scientist David Hughes seriously undermines rosy long-term forecasts made by the U.S. Energy Information Administration (EIA) for U.S. oil and natural gas from shale deposits…
“Saturation of sweet spots in key shale plays may lead to an irreversible production decline.”
“UK growth virtually stalled in October, even before Omicron…
“Alpesh Paleja, the lead economist at the lobby group the CBI, said: “Growth disappointed in October, reinforcing concerns about the resilience of the UK’s economic recovery to the Omicron variant and the impact of further restrictions.””
“Europe Energy Crunch to Linger as Power Prices Hit Records.
“Europe’s energy crunch is set to last as electricity prices climbed to fresh records, fueling inflation and raising bills for millions of households and industries across the continent. ”
“Bulgarian water and sewerage utilities face bankruptcy due to high electricity prices…
“Electricity suppliers are warning the companies under the Bulgarian Water Supply and Sewerage Holding, which serve about four million people out of seven million in Bulgaria, they would be cut off over unpaid bills.”
“Beer Shortage Is a Nightmare Before Christmas for Australians…
“One of the key culprits is a dearth of wooden pallets, a key supply chain input used to transport stock. Sourcing them has become increasingly difficult amid a nationwide shortage…”
“Australian officials are frantically scouring the world for a key chemical [urea] needed for diesel truck engines to start – as a minister admits the country only has five weeks’ supply left.
“Stockpiles of additive urea, a main ingredient of AdBlue, are running low globally after China this year banned exports in a bid to contain fertiliser prices – a key component of food production.”
“Japanese Firms Facing Strongest Cost Pressure Since 1980.
“Japan’s price index of corporate goods rose 9% in November from a year earlier as the pace of gains accelerated from the previous month, according to a report by the Bank of Japan on Friday.”
“Singapore’s middle classes turn to food banks as inflation bites…
“Job losses, stagnant wages and inflation have combined to plunge middle income families into unprecedented food insecurity. Charities warn the situation will get worse next year.”
“China’s vegetable prices surge 30.6% in November as food costs soar.
“Fresh vegetable prices in China surged by 30.6% in November from a year ago… Investors have been watching for signs of whether rapidly rising prices and stagnant economic activity might further drag down growth.”
“China Tries to Manage Global Message on Evergrande Collapse.
“A barrage of commentary from China’s top institutions shows authorities are stepping up efforts to manage the international message on China Evergrande Group’s collapse — even if the developer itself is staying silent about its default status.”
“Emerging markets hit by abrupt slowdown in new foreign investment.
“Foreign investment in emerging market stocks and bonds outside China has come to an abrupt halt over fears that many economies will not recover from the pandemic next year…”
https://www.ft.com/content/0b2c2c42-420c-4610-a7d7-747146905e59
“Skinny Cow Replaces Bull at Sao Paulo Exchange [Brazil] to Protest Hunger.
“A golden bull has given way to a skinny cow in front of Brazil’s stock exchange in Sao Paulo after demonstrators installed the sculpture on Thursday as a form of protest against rising poverty and hunger in Latin America’s biggest economy.”
“South Africa’s list of failure – the state-owned companies that are in a financial crisis.
“Auditor-General Tsakani Maluleke has published the consolidated report on national and provincial outcomes, showing that South Africa’s state-owned companies continue to haemorrhage money…”
“Lebanon’s meltdown drives evictions: ‘It’s only going to get worse here’…
“In October, the government removed state subsidies on all fuel products. Now, 20 litres of gasoline costs nearly half the monthly minimum wage. “In Lebanon you have two choices now: either you buy food or you buy fuel,” said Fahed.”
“Turks wait in line for cheap bread as inflation eats into earnings.
“As the lira’s plunge in value and surging inflation erode Turks’ earnings, many people in Istanbul have taken to waiting in line for the municipality’s cheap bread as they scrimp to make small savings in their household budgets.”
“The coming food crisis in the Middle East…
“The stakes are too high to ignore the coming food crisis in the Middle East. When high bread prices helped spark protests that eventually led to the Arab Spring, the world saw how quickly a lack of basic foodstuffs can translate into political upheaval.”
https://english.alaraby.co.uk/analysis/coming-food-crisis-middle-east
“Iran Ministry Report Says Food Prices Rising Alarmingly.
“A report published Monday by Iran’s cooperatives, labor and social welfare ministry showed prices of most staple foods rising beyond level it calls critical… It said that “essential food items” – including the ones surveyed in October, were up more than 60 percent in October yoy.”
https://www.iranintl.com/en/20211209001529
“Afghans Forced To Sell Houses, Body Organs Amid Worst Economic Crisis Under Taliban Rule…
“The placard stuck on the tree reads, “kidney for sale,” ANI cited Khaama Press report. After the Taliban takeover, people have been left with unemployment and are forced to purchase expensive food items following unprecedented rise in goods price.”
“Sri Lanka will be bankrupt by January…
“Sri Lanka will be bankrupt by January 2022 as the country’s foreign currency reserves are insufficient to fund the foreign currency-denominated debt service repayments over the next two months, Samagi Jana Balawegaya MP Dr. Harsha de Silva claimed.”
https://www.nation.lk/online/sri-lanka-will-be-bankrupt-by-january-harsha-151580.html
“Chip-Delivery Wait Times Grow Again, Signaling Shortages Will Drag On.
“Delivery times for chips lengthened again in November, dashing hopes that the end of shortages that have hammered many industries is finally in sight.”
“Why signs of an improving supply chain are an illusion.
“…some of the signs of improvement have turned out to be illusory, and with the complexity of the supply chain, a scattering of small fixes does not add up to a fundamental improvement… A decline in container prices is not what it seems…”
https://qz.com/2098498/signs-that-the-supply-chain-is-easing-may-be-an-illusion/
“Analysis: Global farmers facing fertiliser sticker shock may cut use, raising food security risks.
“Key crops, from Brazilian corn to Malaysian durians, are at risk after tight supplies and blistering prices of fertiliser have caused farmers to scrimp on vital crop nutrients, adding to global food security and inflation fears.”
“Number of superyachts being built is at its highest ever as the world’s wealthiest flaunt their post-pandemic fortunes.
“This year saw a 25 per cent increase in superyacht orders with a record 1,200 boats commissioned, smashing the previous record of 1,008 commissions in 2009, according to the latest edition of the Global Order Book.”
You can read the previous ‘Economic’ thread here. I’ll be back over the weekend with a ‘Climate’ thread.
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