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.

  • Facebook
  • Twitter
The global economy is being brought to the edge of a precipice by crisis upon crisis.

“As the first World Economic Forum to be held in person since 2020 opened in Davos, Switzerland on Monday, the International Monetary Fund said the economy faces “perhaps its biggest test since the Second World War… “We face a potential confluence of calamities,” IMF Managing Director Kristalina Georgieva said in a statement.”

https://edition.cnn.com/2022/05/23/business/davos-global-economy-imf/index.html


  • Facebook
  • Twitter
World faces ‘unprecedented’ wave of hunger as Ukraine harvests worse than feared.

“The world faces an unprecedented wave of famine and hunger triggered by a further “explosive” increase in food prices, experts have warned, after new figures revealed the extent to which the war in Ukraine will decimate global supplies of wheat.”

https://www.independent.co.uk/news/business/ukraine-food-security-wheat-famine-b2083877.html


  • Facebook
  • Twitter
Global food crisis looms as fertilizer supplies dwindle…

““I’m not sure it’s possible any more to avoid a food crisis,” says World Farmers’ Organization President Theo de Jager. “The question is how wide and deep it will be. Most importantly, farmers need peace. And peace needs farmers.””

https://www.nationalgeographic.com/environment/article/global-food-crisis-looms-as-fertilizer-supplies-dwindle


  • Facebook
  • Twitter
Global Power Grids Face Biggest Test in Decades With Summer Blackouts Expected…

“War. Drought. Production shortages. Historically low inventories. And pandemic backlash. Energy markets across the planet have been put through the wringer over the past year, and consumers have suffered the consequences of soaring prices. But, somehow, things are on track to get even worse.”

https://www.insurancejournal.com/news/international/2022/05/23/668755.htm


  • Facebook
  • Twitter
Natural Gas Market Is Hurtling Toward Historic Winter Shortages.

“The liquefied natural gas market is hurtling toward a potentially historic shortage this winter as the world rushes to secure the super-chilled fuel… “This coming winter has everyone on edge,” said James Whistler, the global head of energy derivatives at Simpson Spence Young.”

https://www.bloomberg.com/news/articles/2022-05-23/natural-gas-market-is-hurtling-toward-historic-winter-shortages


  • Facebook
  • Twitter
Aramco CEO warns of global oil crunch due to lack of investment…

“”What happened in Russia-Ukraine masked what would have happened. We were going through an energy crisis because of a lack of investment. And it started to bite following the pandemic,” Amin Nasser, head of the world’s largest oil producer, said on Monday…”

https://www.reuters.com/business/energy/aramco-ceo-warns-global-oil-crunch-due-lack-investment-2022-05-23/


  • Facebook
  • Twitter
Why Shale Drillers Are Pumping Out Dividends Instead of More Oil and Gas…

“After years of losses, investors demanded changes to how bonuses are formulated, pushing for more emphasis on profitability. Now, executives who were paid to pump are rewarded more for keeping costs down and returning cash to shareholders, securities filings show.”

https://www.wsj.com/articles/why-shale-drillers-are-pumping-out-dividends-instead-of-more-oil-and-gas-11653274423


  • Facebook
  • Twitter
White House considers burning “home heating oil” reserve to reduce diesel prices…

“The White House has become increasingly aware of the “worrisome decline” in diesel inventories in the Northeast… Given the reduction in East-coast diesel inventories of ~45mb, and given the size of the strategic “home heating oil reserve” of ~1mb, it is unlikely the measure will fix existing imbalances.

https://seekingalpha.com/news/3841709-white-house-considers-burning-home-heating-oil-reserve-to-reduce-diesel-prices


  • Facebook
  • Twitter
Inflation Will Lead Inexorably To Recession [US]…

“Eventually unchecked inflation… will make business planning so fraught with uncertainty that businesses will forgo investment projects that would otherwise enhance the economy’s productive potential and encourage job growth. Also as is already evident, workers, even if able to secure wage hikes, will still struggle to keep up with the rapidly rising cost of living and cut back their spending accordingly.”

https://www.forbes.com/sites/miltonezrati/2022/05/22/inflation-will-lead-inexecrable-to-recession/


  • Facebook
  • Twitter
The UK is unprepared for huge food price hikes and shortages of essential goods that will be triggered by the Ukraine war, the head of a government advisory body fears.

“Ian Wright has told The Independent of growing concerns that there is no proper plan for a “scary” future of disrupted food supplies, warning: “This is a bigger crisis than energy.””

https://www.independent.co.uk/news/uk/politics/food-prices-shortages-ukraine-energy-b2083815.html


  • Facebook
  • Twitter
Police prepare for summer of chaos amid fears of civil unrest as ‘frustration grows’ over cost-of-living crisis [UK]…

“Though there is no ‘specific intelligence’ about disorder, policing officials and chief constables are expecting a rise in crime and aggressive behaviour due to the growing frustration over spiraling prices, according to a police source cited by The Times.”

https://www.dailymail.co.uk/news/article-10847537/Police-prepare-summer-chaos-amid-fears-civil-unrest-cost-living-crisis.html


  • Facebook
  • Twitter
Italy’s economic prospects sour as inflation bites.

“… Italy relies heavily on Russia for its energy, leaving it vulnerable to the conflict in Ukraine. “Some countries are more exposed than others,” said Lorenzo Codogno, former director-general of the Italian treasury.”

https://www.ft.com/content/8dd69dbb-b476-4192-9db2-944f7e937f8f


  • Facebook
  • Twitter
Bigger Shocks Are Coming With Your Electricity Bills [UK and Europe]…

“An oil crisis hits the economy like a big wave breaking on the beach: The impact is immediate and dramatic as the crest plunges onto the shore. An electricity crisis is another kind of shock: Akin to a rising tide, it is slow but relentless and then, surprise, you are overwhelmed.”

https://www.bloomberg.com/opinion/articles/2022-05-23/electricity-prices-are-going-to-be-overwhelming-for-late-2022-and-all-of-2023


  • Facebook
  • Twitter
Global gas crunch claims first Australian trading casualty.

“A gas seller that supplied 7% of the eastern Australian market has collapsed due to soaring global gas prices, the first significant casualty in the country from the global gas supply crisis due to sanctions on Russia for its invasion of Ukraine.”

https://uk.sports.yahoo.com/news/global-gas-crunch-claims-first-040508176.html


  • Facebook
  • Twitter
Cost of living crisis shows it’s time for a Universal Basic Income [NZ]…

“Like the two-month extension of half-price fares for public transport, the Government is being too timid. In this current cost of living crisis, there is one policy that other political parties lack the courage to discuss – a Universal Basic Income (UBI).”

https://www.stuff.co.nz/business/opinion-analysis/300594852/cost-of-living-crisis-shows-its-time-for-a-universal-basic-income


  • Facebook
  • Twitter
Chinese real estate defaults have increased so much that Goldman Sachs analysts have shifted to their worst-case scenario for the riskiest part of the market.

“Twenty-two China high-yield bond issuers, all related to the property sector, have either defaulted on their U.S. dollar-denominated bonds or deferred repayment with bond exchanges since the start of this year…”

https://www.cnbc.com/2022/05/24/goldman-sachs-expects-more-china-real-estate-defaults-switches-to-bear-case.html


  • Facebook
  • Twitter
China Coal Expansions Threaten Higher Methane Levels Worldwide…

“China’s plans for 169 new and expanded coal projects could boost global methane emissions from mines that produce the dirtiest fossil fuel by 10%… President Xi Jinping is deepening China’s dependence on coal as a way to mitigate the impact of soaring energy prices and geopolitical instability created by Russia’s invasion of Ukraine.”

https://www.bloomberg.com/news/articles/2022-05-23/china-coal-could-boost-methane-from-world-s-mines-10


  • Facebook
  • Twitter
Oil prices at $110 per barrel pose ‘bigger threats’ than inflation, India’s oil minister says [hard to separate the two, surely?]…

“”If oil prices remain at $110 (per barrel) you are not just talking about inflation, then you’re talking about bigger threats. You know, that’s where the R (recession) word comes in,” Puri told CNBC TV18 in an interview at Davos.”

https://www.reuters.com/markets/commodities/oil-prices-110bbl-pose-bigger-threats-than-inflation-india-oil-min-2022-05-23/


  • Facebook
  • Twitter
Nepal raises retail fuel price, stoking inflation fears.

“Nepal’s state-owned oil company has hiked the retail prices for fuels, including petrol and cooking gas, by up to 12.5% because of rising global oil prices, an official said on Monday, stoking concerns consumer inflation will be further pushed up.”

https://www.reuters.com/world/asia-pacific/nepal-raises-retail-fuel-price-stoking-inflation-fears-2022-05-23/


  • Facebook
  • Twitter
Sri Lanka raises fuel price to record high…

“Crisis-hit Sri Lanka on Tuesday raised the petrol price by 24.3 per cent and diesel by 38.4 per cent, a record hike in fuel prices amidst the country’s worst economic crisis due to the shortage of foreign exchange reserves.”

https://www.telegraphindia.com/world/sri-lanka-raises-fuel-price-to-record-high-petrol-at-rs-420-diesel-rs-400-per-litre/cid/1866619


  • Facebook
  • Twitter
[Pakistan] wheat shortages threaten to turn into full blown crisis.

“With Islamabad already struggling to arrange financing for its rapidly expanding current account deficit, there is more bad news to come. Not only will the government likely be forced to withdraw the massive fuel and electricity subsidies that have hemorrhaged tens of billions from the treasury, it may find it has no option but to raise wheat prices.”

https://www.dawn.com/news/1691226/situationer-wheat-shortages-threaten-to-turn-into-full-blown-crisis


  • Facebook
  • Twitter
Afghanistan’s new poor line up for aid to survive as food crisis bites…

“Many of the people waiting for support in Khwaja Rawash, a middle-class neighborhood near the Kabul International Airport airport, are Afghanistan’s new poor. They used to have decent jobs; now they lean on international aid to survive.”

https://edition.cnn.com/2022/05/22/asia/afghanistan-hunger-new-poor-intl-cmd/index.html


  • Facebook
  • Twitter
Thousands of people took to the streets in Istanbul on Saturday to protest against a prison sentence imposed on one of Turkey’s leading opposition politicians.

“The demonstrations follow a decision by the country’s Supreme Court of Appeal to uphold a nearly five-year jail sentence on Canan Kaftancioglu for insulting the president and the state, based on her posts on Twitter from 2012 to 2017.”

https://www.dw.com/en/turkey-thousands-protest-opposition-politicians-conviction/a-61891768


  • Facebook
  • Twitter
Wheat mill owners in the Palestinian Gaza Strip are struggling.

“Prices have jumped by around 20%, largely following the fighting in Ukraine – which has closed off access to lower-priced Black Sea wheat. It means the territory’s five mills are finding it hard to compete with cheaper imported stock.”

https://uk.sports.yahoo.com/video/gaza-flour-mills-ground-down-151148782.html


  • Facebook
  • Twitter
Egypt’s Bread Crisis Awakens Old Fears of Political Unrest…

“In a country where political discontent often follows spikes in food prices, the potential for bread shortages is among the most urgent security challenges the Egyptian state has faced since the 2013 coup that installed President Abdel Fattah Al Sisi in power.”

https://www.wsj.com/articles/egypts-bread-crisis-wheat-supplies-russia-ukrain-warawakens-old-fears-of-political-unrest-11653318765


  • Facebook
  • Twitter
Tunisia: Islamic Liberation Party protests at ‘political conflict’…

“”All politicians today are dependent on Western plans for them,” Karbaka added. “We do not want to establish an Islamic state, but rather a state for the entire Islamic nation.” Tunisia has been experiencing a severe political crisis since last July, when President Kais Saied froze (and then dissolved) parliament…”

https://www.middleeastmonitor.com/20220523-tunisia-islamic-liberation-party-protests-at-political-conflict/


Malawi is facing acute shortages of foreign exchange currency, forcing two international airlines to suspend some of their services in the country. The situation has negatively affected the operations of many more local and international cross-border businesses.”

https://www.voanews.com/a/malawi-faces-shortages-of-foreign-exchange-currency/6584639.html


  • Facebook
  • Twitter
How shadow banks threaten the global economy… This realm beyond regulators is where the next crisis will arise…

“Shadow banks include creditors of many kinds, from pension funds to private equity firms and other asset managers. Together they manage $63tn in financial assets — up from $30tn a decade ago. What started in the US has spread worldwide…”

https://www.ft.com/content/d22ec352-a4a4-4f4c-832a-cb05af5110f1


  • Facebook
  • Twitter
The world’s financial system is entering dangerous waters again, warns guru of the Lehman crisis…

“There is a frighteningly-long list of shoes to drop as inflation finally forces central banks to do what they desperately wish not to do, which is to yank away the debt shield that lulled both investors and the political class into a false sense of security.

“We don’t know what is going to break until it does, but there are a lot of reasons to worry, and there is going to be severe stress,” Columbia professor Adam Tooze said on the eve of the World Economic Forum, the conclave of the great and the good in Davos.”

https://www.telegraph.co.uk/business/2022/05/23/worlds-financial-system-entering-dangerous-waters-warns-guru/


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 is a huge help, especially as the cost of living crisis is biting here in the UK.

Share This

Share this post with your friends!