“Linchpin to Biden’s $1.75 trillion infrastructure bill pulls support… US senator Joe Manchin, a moderate Democrat who represents a crucial vote for Biden’s bill, said he would not support the package…
“Manchin has been holding off on publicly announcing whether he supports the bill, which is designed to expand the social safety net and step up US efforts to tackle climate change.
“It is also the flagship policy in President Biden’s legislative agenda. Losing Manchin’s vote could derail the bill’s ascent through the US political system due to the Democrats’ slim margin of control.”
https://www.cityam.com/linchpin-to-bidens-1-75-trillion-infrastructure-bill-pulls-support/
“Bond traders suspect the Federal Reserve will quickly discover it’s being too ambitious with its newly hawkish stance….
“The concern is that the economy won’t be able to handle the loftier rates policy makers have in mind, which limits how far central bankers can raise interest rates and how high Treasury yields can go.”
“Labour urged to vote down ‘draconian’ changes to crime bill [UK].
“The Labour party has been urged to take advantage of a unique opportunity to vote down a raft of last-minute amendments to an already controversial crime bill, which human rights activists have described as “a dangerous power grab”.”
“New COVID measures and restrictions spark protests across Europe, inciting anger.
“Thousands of protesters rallied across Europe this weekend, as nations were moving to impose tougher measures to stem a new wave of COVID-19 infections spurred by the highly transmissible Omicron variant.”
“Europe Braces for Energy Crunch This Week as Deep Freeze Sets in.
“Temperatures are forecast to fall below zero degrees Celsius in several European capitals this week, straining electricity grids already coping with low wind speeds and severe nuclear outages in France. To make matters worse, Russia signaled it intends to keep natural gas flows through a major transit route to Germany limited…”
“Russia’s financial system would not collapse if it was disconnected from the SWIFT global interbank payments system, the head of the country’s second-largest lender VTB Bank (VTB) said on Sunday…
“The media comments follows speculation the White House would push to kick the Kremlin out of the SWIFT payments system if the Russia invaded Ukraine.”
https://www.cityam.com/russia-will-survive-if-kicked-out-of-swift-system-says-vtb-chief-executive/
“China cuts lending rate as economic momentum falters.
“The People’s Bank of China has cut one of the country’s most important lending rates in a sign that the government is pushing ahead with policy easing measures to counter a loss of economic momentum.”
https://www.ft.com/content/404ba4a1-d25f-42ee-b602-6d89e8472d4d
“Kaisa Group Holdings Ltd. said Monday that it has missed payments on various senior notes and that it is in talks for a debt restructuring with bondholders.
“The Chinese developer didn’t make payment on a US$400 million, 6.5% senior note that matured Dec. 7 and missed out on interest payments of three other bonds.”
https://www.marketwatch.com/story/chinese-developer-kaisa-misses-bond-payments-271639960631
“China’s property distress sours steel sector in warning sign for economy.
“Debt problems at a major Chinese property developer have now spilled over into a vital artery of the nation’s industrial engine – the steel sector – and started to ripple through to other critical parts of the world’s second-largest economy.”
“China’s Solar Giants Fall After U.S. Climate Plan Failure. Solar firms in China fell Monday after a $2 trillion U.S. economic plan with crucial climate provisions suffered a potentially fatal setback in Congress.”
“Latin America’s Heavy Debt Load Could Spark More Unrest in 2022.
“Latin America looks set to take the reins next year as the developing world’s largest issuer of new debt, a step that according to some strategists could sow the seeds of future turmoil in the region.”
“Brazil has pulled a bait-and-switch that will diminish the country’s already-damaged standing with international investors.
“The National Congress this month rushed to pass legislation to allow the government to avoid paying billions of dollars in precatórios—court-ordered government payments to individuals and companies, many of which were encouraged to do business in Brazil by government pledges of prompt payment.”
“Social unrest in Peru this year led to lower production of about 150,000t of copper, according to estimates by mining-energy association SNMPE.
“In a conference organized by the Peruvian Institute of Mining Engineers, association head Raúl Jacob said that if 100,000t are not produced, the State loses 1.45bn soles (US$363mn) in taxes.”
“Gabriel Boric, a former student protest leader, has won the final round of Chile’s presidential election as the Latin American country took a decisive shift to the left after several years of civil unrest.
“Boric secured 56 per cent of the vote in Sunday’s runoff, well ahead of José Antonio Kast, his ultra-conservative rival, on 44 per cent.”
https://www.ft.com/content/fa9ba840-5d66-45e6-bf7a-2b8b4f6d9386
“Argentina Limits Grain Exports in Fight Against Food Inflation. Argentina is putting a ceiling on exports of corn and wheat in a fresh bid by the leftist government to quell food inflation at home.”
“South and Southeast Asia have experienced a sharp decline in liberal democracy during the COVID-19 pandemic.
“Under the pretext of combating COVID-19, the Philippines and Thailand have suppressed freedom of speech, while Indonesia has concentrated power in the hands of government. India has promoted a COVID-19 tracking application that violates personal privacy…”
“International ratings agency Fitch downgraded cash-strapped Sri Lanka today due to mounting fears of a sovereign default on its US$26 billion foreign debt…
“The downgrade by one notch from “CCC” to “CC” came a day after Sri Lanka reported a 1.5 per cent contraction in the third quarter of this year as a foreign exchange crisis wrecked its recovery from the coronavirus pandemic.”
“Protests throughout Pakistan against gas crisis during peak winter.
“Protest demonstrations were held in every district in the country against a severe natural gas shortfall that is causing immense misery to people during peak winter.”
“Pakistan’s gas crisis to worsen as LNG supplier defaults.
“Pakistan can expect its gas crisis to worsen further in the coming weeks and months as the Singapore-based LNG trading company, GUNVOR, has intimated to authorities in the government that it will not be able to deliver its term LNG cargo due on January 10, 2022 by claiming the force majeure.”
https://www.geo.tv/latest/388696-pakistans-gas-crisis-to-worsen-as-lng-trading-company
“Inside the deadly water crisis threatening Iran’s leadership…
“Climate change is exposing the weaknesses of an economy built on oil extraction and unsustainable agricultural practices. As the planet gets hotter through mid-century, Iran is likely to experience more extended periods of extreme high temperatures as well as more frequent dry periods and floods…”
https://www.japantimes.co.jp/news/2021/12/20/world/iran-water-crisis/
“Tunisian demonstrators have rallied for and against President Kais Saied as the crisis-hit country marked the anniversary of a revolution that sparked the 2011 Arab uprisings.
“On Monday, he extended his suspension of parliament until elections in December 2022 and announced a nationwide public consultation to draw up a new constitution, sparking renewed tensions.”
https://www.aljazeera.com/news/2021/12/17/hundreds-protest-in-tunisia-on-anniversary-of-revolution
“Civil unrest surges 45% in MENA region last year.
“The number of protests and riots in the MENA (Middle East & North Africa) region has jumped by 45% in the last year, from 19,677 to 28,458 incidents, according to new analysis by specialty re/insurance group Chaucer.”
https://www.reinsurancene.ws/civil-unrest-surges-45-in-mena-region-last-year/
“The Committee to Protect Journalists has recorded another dismal milestone in the onslaught of authoritarian leaders against a free press — a new high over the past year in the number of journalists jailed around the world.
“In its annual report on reporters jailed for their work, the organization, which is a nongovernmental nonprofit, said 293 journalists were imprisoned around the world, an increase of 13 from 2020.”
https://www.nytimes.com/2021/12/18/opinion/free-press-journalists-jailed.html
“There is no silver bullet for decarbonising the shipping industry and it would be dangerous for governments to bet on simple solutions for one of the world’s most polluting sectors, according to one of the largest manufacturers of marine engines…
“…different shipping companies have pushed a variety of fuels from liquefied natural gas to hydrogen and methanol, preferably all produced using renewable energy.”
https://www.ft.com/content/51aacc97-8a06-4cf6-9960-507af8afefd4
“Global supply chain crisis could last another two years, warn experts… As some bottlenecks ease others are just starting…
“The gravest appears to be an outbreak of Covid this week in the Chinese manufacturing hub of Zhejiang, which is home to the world’s largest cargo port, Ningbo-Zhoushan. Tens of thousands are in quarantine under China’s strict zero-Covid policy…”
“People pressure governments worldwide to act on inflation… Political pressure has led countries including Poland Hungary and the U.S. to take steps such as instituting caps on gas prices, pledging money for poor households or releasing oil from strategic reserves.
“Spain was among places like Turkey seeing more intense efforts such as protests and work stoppages tied to complaints about inflation…”
https://www.independent.co.uk/news/world/europe/spain-people-hungary-poland-barcelona-b1978597.html
“Inflation Crashes the Holidays, Shrinking Menus and Spoiling Traditions…
“Mince pies. Latkes. Eggnog. Tamales. As extended families the world over plan holiday celebrations again, they’re encountering a harsh reality: Traditional foods, especially those sold for a limited time in even a normal year, are significantly costlier in 2021—if they’re even available at all.”
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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