Daily updates on climate change and the global economy.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

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Global recession risks rise after Russia invades Ukraine.

“U.S. and European economies are facing a heightened risk of a recession this year as Russia’s invasion of Ukraine severely disrupts supply chains and causes inflation to accelerate to the fastest rate since the 1970s.”

https://www.reuters.com/markets/europe/global-recession-risks-rise-after-russia-invades-ukraine-kemp-2022-03-04/


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War in Ukraine threatens the global financial system…

“The main point that investors need to understand, notes Adam Tooze, a professor at Columbia University, is that “Russia’s reserve accumulation, like reserve accumulation by other oil and gas producers such as Norway or Saudi Arabia, is a source of funding in western markets — [and] part of complex chains of transactions that may now be put in jeopardy by the sanctions.””

https://www.ft.com/content/5005cd1a-bb46-47e6-abd8-14ae01a7a6f0


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Why Ukraine could spark a global financial crisis.

“In short, the ripple effects of this war are potentially enormous, and many more will probably become apparent in the coming days and weeks. With the global economy still recovering from the pandemic and already having to deal with substantial inflation, the markets have been highly volatile.”

https://asiatimes.com/2022/03/why-ukraine-could-spark-a-global-financial-crisis/


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If Russian Currency Reserves Aren’t Really Money, the World Is in for a Shock.

“Sanctions have shown that currency reserves accumulated by central banks can be taken away. With China taking note, this may reshape geopolitics, economic management and even the international role of the U.S. dollar.”

https://www.wsj.com/articles/if-currency-reserves-arent-really-money-the-world-is-in-for-a-shock-11646311306


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Russia Energy Chaos Triggers the Biggest Market Shock in Decades. Disruption resembles oil crises of 1970s, says Goldman Sachs

“Russia’s invasion of Ukraine and the resulting international backlash has plunged energy markets into chaos, threatening dire economic consequences that rival those of the 1970s oil shocks.”

https://www.bloomberg.com/news/articles/2022-03-05/russia-energy-chaos-triggers-the-biggest-market-shock-in-decades


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Putin’s energy shock is broadening into a world food crisis, so brace for rationing…

“The world faces what amounts to a commodity “black swan” across the gamut of primary resources. Oil, gas, coal, and the “ags” are all spiraling higher together, with metals catching up fast. It is a systemic stagflation shock, an intractable problem for central bankers.”

https://www.telegraph.co.uk/business/2022/03/04/putins-energy-shock-broadening-world-food-crisis-brace-rationing


Food prices jump 24.1% yr/yr to hit record high in Feb, U.N. agency says. World food prices hit a record high in February, led by a surge in vegetable oils and dairy products, to post a 24.1% increase year-on-year, the U.N. food agency said on Friday.”

https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/


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Rice soars as Ukraine war starts scramble for any grains. Rice is the latest commodity to get swept up in the turmoil of Russia’s invasion of Ukraine.

“Prices for rice are surging because traders are betting it will be an alternative for wheat, which is becoming prohibitively expensive. Exports of wheat from Russia and Ukraine account for more than a quarter of the crop’s trade worldwide and a fifth of corn sales.”

https://www.bloomberg.com/news/articles/2022-03-03/rice-soars-as-ukraine-war-starts-scramble-for-any-and-all-grains


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How the war in Ukraine will hammer British consumers with higher costs.

“Families face the largest cost of living squeeze for a generation. Even prior to the invasion of Ukraine, a combination of booming global demand, Covid-battered supply chains and an energy crunch were set to push UK inflation past 7pc.”

https://www.telegraph.co.uk/business/2022/03/05/war-ukraine-will-hammer-british-consumers-higher-costs/


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British and European gas prices both hit record highs on Friday as the war in Ukraine continued to wreak havoc on energy markets, threatening to exacerbate the cost of living crisis.

“The UK National Balancing Point (NBP) benchmark soared above 500p a therm at one point, smashing through the previous all-time high set in December…”

https://www.theguardian.com/business/2022/mar/04/gas-prices-hit-record-high-again-as-ukraine-invasion-disrupts-markets


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European households have been urged to turn down their thermostats to prevent the Kremlin from using its gas as an “economic and political weapon” in an unprecedented intervention by the International Energy Agency.

“It said a one degree reduction could reduce Europe’s gas consumption by about 10bn cubic metres a year.”

https://www.telegraph.co.uk/business/2022/03/03/turn-thermostat-stop-russia-using-gas-economic-political-weapon/


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Europe Stocks See Biggest Ever Weekly Outflow as War Intensifies.

“The escalation of the war in Ukraine is pushing investors to exit European stocks like never before amid rising inflation risks, according to Bank of America Corp. strategists. European equities had their largest outflows on record at $6.7 billion in the week to March 2…”

https://www.bloomberg.com/news/articles/2022-03-04/europe-stocks-see-biggest-ever-weekly-outflow-as-war-intensifies


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Fitch, Moody’s Slash Russia’s Sovereign Debt to Junk.

“”The multi-notch downgrade of Russia’s ratings and maintaining the review for further downgrade were triggered by the severe sanctions that Western countries have imposed on Russia,” including on its central bank and some large financial institutions, Moody’s said in a statement.”

https://www.themoscowtimes.com/2022/03/03/fitch-moodys-slash-russias-sovereign-debt-to-junk-a76733


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Financial armageddon looms as investors wait for Moscow’s ‘uninvestable’ stock market to reopen.

“The prolonged cessation of trading is the longest closure of the exchange since 1998, when Russia was in the midst of a severe financial crisis. It led to the Kremlin devaluing the ruble and defaulting on its debt…”

https://www.telegraph.co.uk/business/2022/03/04/financial-armageddon-looms-investors-wait-moscows-uninvestable/


Russia’s largest airline yanked from global reservation systems. The reservation system that is the backbone of airlines around the world has terminated its agreement with Aeroflot, crippling the majority government-owned carrier’s ability to sell seats.”

https://edition.cnn.com/travel/article/russian-airline-aeroflot-sabre-reservations/index.html


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Russia halts deliveries of rocket engines to the U.S…

“”In a situation like this we can’t supply the United States with our world’s best rocket engines. Let them fly on something else, their broomsticks, I don’t know what,” Dmitry Rogozin, head of the state space agency Roscosmos, said on state Russian television.”

https://www.reuters.com/world/russia-halts-deliveries-rocket-engines-us-2022-03-03/


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Russian Ministry Recommends Suspending Fertilizer Exports.

“Russia could suspend exports of fertilizers, state news agency TASS reported, a move that would remove a large portion of global supply from the market… Such a move would likely stoke prices, potentially hurting farmers worldwide.”

https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-04/card/russian-ministry-recommends-suspending-fertilizer-exports-8gJNAaRR7PBi6HvV4T3o


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War-Hit Crop Superpower Ukraine Faces Struggle to Even Sow…

“From fields to processing plants to ports, Russia’s invasion is paralyzing Ukrainian agriculture, an industry that produces tens of millions of tons of grains and oilseeds and ships crops across the globe.”

https://www.bloomberg.com/news/articles/2022-03-04/war-hit-crop-superpower-ukraine-faces-struggle-to-even-sow


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Food Protectionism Is Spreading as Hungary Bans Grain Exports.

“Governments around the world are taking steps to safeguard domestic food supplies… Protectionist measures — which already picked up in recent years as the Covid-19 pandemic sparked worries about local supplies and high prices — could spell more bad news for global food trade.”

https://finance.yahoo.com/news/governments-step-protect-food-supplies-162829874.html


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Asia faces food shortages as Russia-Ukraine fighting hits shipments.

“Heavy fighting closes off parts of the Black Sea, affecting shipments of wheat, oats and other cereals to Asia upsetting supply chains. Disturbance could create domino effect on production of other consumer foods…”

https://www.scmp.com/week-asia/economics/article/3169299/asia-faces-food-shortages-russia-ukraine-fighting-hits


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China ag minister says winter wheat condition could be worst in history.

“The condition of China’s winter wheat crop could be the “worst in history”, the agriculture minister said on Saturday, raising concerns about grain supplies in the world’s biggest wheat consumer.”

https://www.reuters.com/business/china-ensure-agricultural-product-supplies-including-grains-2022-03-05/


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China cuts economic growth goal as it tries to reverse slump.

“China has cut its annual economic growth target to its lowest level in decades as Beijing tries to reverse a slump at a time when Russia’s war on Ukraine is pushing up oil prices and roiling the global economy.”

https://www.independent.co.uk/news/china-li-keqiang-vladimir-putin-beijing-ukraine-b2029145.html


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In China, Fewer Are Willing to Splurge as Economic Worries Mount.

“More than two years into the pandemic, China has a problem that would seem very unfamiliar in the U.S. It can’t convince its people to spend more money. From canceled vacation trips to cutting back on dining out, Chinese consumers have remained cautious.”

https://www.wsj.com/articles/in-china-fewer-are-willing-to-splurge-as-economic-worries-mount-11646313507


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[Nigeria] Energy crises: Electricity output plunges…

“…more businesses and households are thrown into skeletal operations and darkness. This comes against the backdrop of worsening supply shortages of the premium motor spirit, as long queues at the various petrol stations across the country is adversely affecting businesses and livelihood.”

https://www.vanguardngr.com/2022/03/energy-crises-electricity-output-plunges/


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In crisis-hit Tunisia, IMF deal hangs in the balance.

“The Tunisian government’s official programme to the IMF, leaked in early January, details a fiscal proposal which includes cutting energy subsidies. The government document also specifies freezing salaries and recruitment in the public sector for 2022.”

https://english.alaraby.co.uk/analysis/crisis-hit-tunisia-imf-deal-hangs-balance


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Turkey: No respite for inflation as it reaches 54.4%.

“While the February inflation has remained on a rapid uptrend with a broad-based deterioration in pricing behaviour, upside risks remain at the forefront with the Russian and Ukraine conflict and likely spillovers.”

https://think.ing.com/snaps/turkey-no-respite-for-inflation/


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Sri Lanka’s economic crisis deepens as the country is snowed under its crushing debt…

““It almost feels like we are re-living the 1970s when everything was rationed,” said Zahara Zain, a small food business owner from the capital of Colombo. She said daily life has become a struggle for most Sri Lankans as the price of many basic food items have skyrocketed due to limited supply.”

https://www.cnbc.com/2022/03/04/sri-lankas-economy-inflation-and-debt-burden-worsen-economic-crisis.html


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Ukraine could tilt Pakistan into financial crisis.

“The International Monetary Fund’s US$6 billion bailout package for Pakistan is in jeopardy after Islamabad announced new fuel and energy subsidies and unveiled a tax amnesty scheme amid fears the Ukraine crisis would push the country’s current account deficit to a historic high of $20 billion.”

https://asiatimes.com/2022/03/ukraine-could-tilt-pakistan-into-financial-crisis/


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Two cargo ships hit by explosions around Ukraine, one seafarer killed…

“Many shipping firms have suspended sailings to affected Black Sea ports and other terminals in Ukraine, with insurance premiums for voyages soaring in recent days. At least three commercial ships have been hit by projectiles since Feb. 24.”

https://www.reuters.com/world/bangladesh-cargo-ship-hit-by-missile-crew-member-killed-bangladesh-official-2022-03-03/


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Russia’s war on Ukraine triggers ‘earthquake’ in global shipping, trade industry.

“The seven-day-old Russian invasion of Ukraine has set off an “earthquake” in the shipping and trade industry, disrupting routes, diverting merchant ships, and driving up costs as Western sanctions on Moscow start to bite, according to the founder of Israeli marine intelligence firm Windward.”

https://www.timesofisrael.com/russias-war-on-ukraine-triggers-earthquake-in-global-shipping-trade-industry/


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

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