“Global crises undermine efforts to get climate talks back to normal… U.N. climate chief raises alarm over a ‘world beset with conflicts, energy, food and economic crises.’
“Climate negotiators crave a return to “normality” when global warming dominated the agenda — but war, hunger and disease overshadowed the beginning of talks in Bonn, Germany Monday.
“”We all know that the world of COP27 will look nothing like it did for COP26,” said U.N. climate chief Patricia Espinosa, referring to the COP26 conference held in Glasgow seven months ago and the next U.N. talks in Egypt this November. “It is a world beset with conflicts, energy, food and economic crises … and the global pandemic is still with us.””
https://www.politico.eu/article/global-crises-undermine-efforts-to-get-climate-talks-back-to-normal/
“The United Nations warned on Monday of a looming widespread food crisis and called for urgent humanitarian action in 20 ‘hunger hotspots’.
“The Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) said the food crisis was the result of conflict, weather extremes, economic shocks and the lingering impacts of Covid-19.”
https://www.laprensalatina.com/un-warns-of-looming-widespread-food-crisis/
“Oil Shock Devastates Poorer Nations as Shortages, Protests Mount.
“Higher fuel bills are exacerbating inflation in countries that are already struggling with soaring food prices. The combination is leading to unrest and protests from citizens, which democratic governments know from experience is one of the surest ways to lose popularity and power.”
“Commodities Gauge Soars to Fresh Record Amid Supply Crunch.
“Spot commodity prices surged to a fresh record high as energy and food supplies continue to be roiled by the war in Ukraine, while China rolls back demand-curbing Covid-19 lockdowns. The Bloomberg Commodity Spot Index, which tracks prices for 23 raw materials, rose 1.9% Monday to its highest-ever level.”
“Biden Has ‘Only Bad Options’ for Bringing Down Oil Prices…
““A president has to try,” said Bill Richardson, an energy secretary in the Clinton administration. “Unfortunately, there are only bad options. And any alternative options are probably worse than asking the Saudis to increase production.”” [which they may not be able to do by a significant amount anyway.]
https://www.nytimes.com/2022/06/05/business/biden-oil-saudi-arabia.html
“[US] Home affordability has ‘collapsed’ in 2022…
“The double whammy of surging mortgage rates and skyrocketing home prices has led to “collapsed” housing affordability in America, according to Chris Flanagan’s team at BofA Global Research. The situation has gotten so bad that it now compares to the “historically low affordability readings” in the fourth quarter of 1987 and the first quarter of 2005…”
“Hunger ‘Cliff’ Looms as Pandemic School-Lunch Aid Is Running Out [US]…
“Schools and child-feeding sites are bracing for rising costs and supply disruptions as federal meal subsidies run out in weeks… The waivers expire June 30—barring congressional action to renew them.”
“[UK] Parents have claimed the cost of living crisis is ‘forcing them to drop off food at school gates as its canteen regularly runs out’ – as pupils are faced with eating ‘disgusting’ meals or going without anything at all.
“Parents at Wyvern Academy in Darlington, County Durham, claim children are regularly going without food because the school’s kitchen supply is continually running short of produce.”
“Petrol prices in Britain have broken through the £8-a-gallon barrier for the first time ever, with drivers facing ‘frightening’ 180p-a-litre ‘within days’, amid Ukraine crisis.
“The average price at the pumps hit 177.88p a litre yesterday to bring Jubilee celebrations down to earth with a bump, particularly for drivers filling up to go home after a long Bank Holiday away.”
“[Ireland] People will be ordered to work from home in the event of a major fuel crisis sparked by the war in Ukraine, under secret Government emergency plans.
“The Irish Independent has learned confidential details of an emergency planning exercise held 10 days ago between all the major state agencies and the Government.”
“Protests began in Poland as fuel prices reached historical highs, and experts predict further rises due to the EU oil embargo on Russia, local media report.
“Fuel prices in Poland are now at their highest since 2000. The price of PB95, the most commonly used petrol, averaged 7.62 zlotys per litre (€1.66). These prices have already caused some unrest.”
“[Australia] Big electricity generators have warned manufacturers will struggle to stay afloat as the energy crisis escalates and gas producers move to boost supply.
“After The Australian revealed a major coal-fired unit at AGL Energy’s Liddell Power Station had failed, compounding a crunch in the national electricity market, major producers said the massive rise in wholesale power prices could cripple large energy users.”
“Japan is stepping up appeals to citizens and companies to conserve electricity with the nation facing a summer energy supply squeeze and escalating fuel import costs amid the yen’s plunge…
““The power supply this summer and the upcoming winter will be very tough,” chief cabinet secretary Hirokazu Matsuno said Tuesday. “We would like households and businesses to do what they can, like turn off lights in unused rooms and hallways, and turning down the temperature of the refrigerator.””
“China May services activity contracts for third straight month – Caixin…
“The Caixin services purchasing managers’ index (PMI) rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains. However, the reading remained well below the 50-point mark that separates growth from contraction…”
https://uk.sports.yahoo.com/news/china-may-services-activity-contracts-014941466.html
“As fuel prices balloon, governments worldwide must crack down on smuggling…
“… challenges relating to fuel theft and smuggling are not limited to South Africa. Around the world, including in Europe, rising energy and oil prices are driving a rise in fuel smuggling. Governments must therefore act decisively…”
https://qrius.com/as-fuel-prices-balloon-governments-worldwide-must-crack-down-on-smuggling/
“What next as Uganda deals with crippling fuel shortage?
“While fuel prices across the globe have risen steeply over the past few months, it seems African countries have been disproportionately affected due to a number of reasons. A supply chain that has been knocked sideways by both the pandemic and Russia-Ukraine war has further distorted things.”
“In Nigeria, Gas Shortages Add Fuel to the Fire.
“Nigeria could see widespread unrest in the next 12-to-18 months, as the country’s deepening fuel crisis further erodes Nigerians’ purchasing power and quality of life… the potential for such protests will increase pressure on the government to keep costly fuel subsidies in place, further dimming Nigeria’s long-term financial outlook.”
https://worldview.stratfor.com/article/nigeria-gas-shortages-add-fuel-fire
“Tunisian police clash with protesters demonstrating against Saied referendum…
“”The police… sprayed gas in our faces and attacked us,” said Hamma Hammami, head of the Tunisian Workers’ Party. Saied on July 25 sacked the government and suspended parliament, which he later dissolved in moves that sparked fears for the only democracy to have emerged from the Arab Spring uprisings.”
“Palestinians protest against soaring food prices.
“Palestinian police made a number of arrests on Monday as protests against soaring prices for food and other necessities spread a day ahead of a planned strike to demand action from the cash-strapped Palestinian Authority.”
https://www.middle-east-online.com/en/palestinians-protest-against-soaring-food-prices
“One killed, three wounded as Turkish and Syrian opposition forces open fire on protests against electricity companies [Aleppo, Syria].
“Citizens were demonstrating against two increases in electricity prices within the past month alongside continued power cuts, as price hikes and sky-high inflation have plunged the region into deep poverty following the country’s 11-year-long war.”
https://english.alaraby.co.uk/news/one-killed-three-wounded-syrian-electricity-protests
“In response to the call of Jamaat-e-Islami’s leadership, protest demonstrations against a massive hike in petroleum products were staged across Karachi [Pakistan].
“The demonstrations were staged at 11 major points across Karachi. The protesters, carrying placards and banners, chanted slogans against the government for following the footprints of the previous government.”
https://pakobserver.net/petrol-price-hike-ji-stages-protests-across-city/
“Sri Lanka to operate one-third of private buses from June 06.
“Rationed diesel given to bus owners is not enough to continue normal operations and drivers also have to wait for many hours in queues… Sri Lanka is now in the midst of the worst currency crisis and the first default triggered by the country’s Latin America style central bank in its 72-year history.”
https://economynext.com/sri-lanka-to-operate-one-third-of-private-buses-from-june-06-95187/
“Sri Lankan zoo animals face the heat of financial crisis as authorities run out of money to feed them.
“Department officials said that there has been a severe shortage of funds due to the declining number of foreign tourists and local visitors… The Dehiwala Zoological Garden, one of the oldest zoos in Asia, has a substantial collection of animals from all over the world.”
“‘Liquidity is terrible’: poor trading conditions fuel Wall Street tumult.
“Traders’ ability to seamlessly buy and sell stocks, bonds and other financial products on Wall Street has deteriorated sharply this year, adding fuel to the big swings on the world’s biggest and deepest capital markets.”
https://www.ft.com/content/cbc47bbf-f158-4330-9e29-5b0b71935140
“Tech and Crypto in Peril as Fed Ends Liquidity Binge… The speculative darlings of the easy-money era — technology stocks and cryptocurrencies — are acutely vulnerable now that the Federal Reserve is shrinking its nearly $9 trillion balance sheet.
“At the same time, central bankers from Canada to Europe are about to test the resilience of global markets as they follow hawkish US policy makers on a liquidity-sapping mission to unwind the pandemic bond-buying spree.”
“The value of initial public offerings in the US and Europe has fallen 90 per cent this year as the Ukraine war and rising inflation and interest rates have forced businesses to shelve plans to go public…
“The figures suggest that the issuance slump in the first quarter of 2022, which was triggered by Russia’s initial invasion of Ukraine, has not eased, with volumes also set to be sharply down year on year at the end of the second quarter later this month.”
https://www.ft.com/content/bc96ce22-8065-4be7-b577-5ba9ba225568
“Gold’s Haven Appeal Burnished by Drumbeat of Growth Warnings… Gold could be heading for another rally, with warnings over a global economic slowdown paving the way for a fresh push toward $2,000 an ounce.
“A potent mix of decades-high inflation, geopolitical turmoil and growing talk of recession should be bullish for the traditional haven…”
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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