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 markets closed out their most bruising first half of a year in [over five] decades, leaving investors bracing for the prospect of further losses.

“Accelerating inflation and rising interest rates fuelled a months-long rout that left few markets unscathed. The S&P 500 fell 21% through Thursday, suffering its worst first half of a year since 1970…

“Stocks and bonds in emerging markets tumbled, hurt by slowing growth. And cryptocurrencies came crashing down, saddling individual investors and hedge funds alike with steep losses.”

https://www.wsj.com/articles/markets-head-toward-worst-start-to-a-year-in-decades-11656551051


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Factory data dampen global hopes for ‘soft landing’.

“Global manufacturing struggled in June as higher prices and a darker economic outlook left consumers wary of making purchases, while China’s strict COVID-19 lockdowns and Russia’s invasion of Ukraine added to supply chain disruptions, surveys showed.”

https://www.reuters.com/markets/europe/global-economy-factory-data-dampen-global-hopes-soft-landing-2022-07-01/


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Corporate fundraisings slide 25% during market rout of 2022.

“The chill in capital markets underscores a powerful shift from exuberance to trepidation this year as central banks aggressively tighten monetary policy to temper persistently hot inflation… The three months between April to June represented an “Oh my God” quarter, according to Alex Veroude, chief investment office for fixed income at $1tn asset manager Insight Investment.”

https://www.ft.com/content/24af32a9-a032-4e00-bfce-6da00f6e639a


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Copper trades below $8,000 a tonne as recession fears take hold. World’s most important industrial metal had struck a record high above $10,600 earlier this year…

“Widely regarded as a gauge of economic activity because of its use in everything from household appliances to electric vehicles, the metal fell as much 3 per cent to $7,959 a tonne, leaving it on course for its fourth consecutive weekly decline.”

https://www.ft.com/content/34f670bf-6432-423f-b887-00700478b249


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Higher food prices, global shortages feared as crop fertilizer prices soar…

If fertilizer prices persist, food shortages will undoubtedly follow as farmers cut back to save money, Jason Grant said. “The larger issue is that if we cut back on fertilizer, that impacts yield, that reduces supply available for key staple grains and food products,” he said.”

https://eu.usatoday.com/story/money/2022/06/30/food-inflation-fertilizer-cost-farmers-ukraine/7705316001/


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US Consumer Spending Gains Cooled in May…

“Higher costs across the economy are changing consumer behavior… Consumers are especially pulling back for products whose prices have risen most rapidly, like gasoline. In the first full week of June, gasoline sales by volume at U.S. stations were down about 8.2% compared with the same week last year…”

https://www.wsj.com/articles/inflation-consumer-spending-personal-income-may-2022-11656531317


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California may need to tap fossil fuel-powered generation capacity to avoid blackouts this summer, the AP has reported, citing a proposal signed this week by Governor Gavin Newsom…

“The measure is a short-term one, however, as the gas-fired plants are set to close next year. Diesel generators will also be killed as a source of energy in California beginning next year.”

https://oilprice.com/Latest-Energy-News/World-News/California-May-Need-Fossil-Fuel-Power-To-Avoid-Blackouts.html


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Tight Gasoline Supplies Send US Fuelmakers into Maximum Output Mode. Summer heat, high run rates elevate the risk of a refinery breakdown as the US wrestles with high gasoline prices…

““Running hard increases general stress on a unit, increasing the risk of an unplanned outage,” said Robert Campbell, head of oil products research at London consultancy Energy Aspects Ltd.”

https://www.bloomberg.com/news/articles/2022-07-01/tight-gasoline-supplies-send-us-fuelmakers-into-maximum-output-mode#xj4y7vzkg


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Cost-of-living Ireland: Leo Varadkar warns crisis could go on for ‘years’…

“The Fine Gael leader said: “The cost of living crisis is happening right here, right now. It’ll happen all the way through to the Budget and it will continue after the Budget. “That is truth of it. We are facing a global inflation crises and it won’t end because of any budget whether it is an emergency budget before the autumn or whether it is one in autumn.”

https://www.dublinlive.ie/news/dublin-news/cost-living-ireland-leo-varadkar-24367450


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A “tired” and “scared” mother [UK] has said she had to sell her daughter’s bike to pay for food and bills amid the spiralling cost of living crisis.

“As record levels of UK inflation wreak havoc on household finances, Lowri told ITV News the countless sacrifices she has to make are “soul-destroying”. She is among three women who filmed video diaries for ITV News, in which they revealed their families’ everyday struggles and fears.”

https://www.itv.com/news/2022-07-01/scared-mother-had-to-sell-daughters-bike-amid-spiraling-cost-of-living-crisis


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Downing Street is exploring the idea of trying to tackle the housing crisis with ultra-long mortgages of up to 50 years that could pass between generations, allowing more people to build up equity rather than pay rent.

“Mortgage experts said the idea could bring some benefits but flagged problems, including the potential to saddle children with debt, and the fact it would not tackle the fundamental issue of housing supply.”

https://www.theguardian.com/money/2022/jul/01/no-10-considers-50-year-mortgages-that-could-pass-down-generations


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Angry Dutch farmers brought their cows to parliament, threatening to slaughter them in protest of the government’s nitrogen reduction targets.

“The country’s goal to halve nitrogen output by 2030 will force some Dutch farmers out of business, according to a government plan published earlier this month.”

https://www.bloomberg.com/news/articles/2022-06-28/dutch-farmers-bring-cows-to-parliament-to-protest-nitrogen-cuts#xj4y7vzkg


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Inflation across the eurozone has soared to a fresh record of 8.6% in June as Russia’s war in Ukraine adds to the cost of living crisis.

“Figures from the EU statistics agency Eurostat showed consumer price inflation increased from 8.1% in May, reaching the highest level since relevant records began in 1997, two years before the euro was launched.”

https://www.theguardian.com/business/2022/jul/01/inflation-in-eurozone-hits-record-86-as-ukraine-war-continues


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Italy issues bonds at highest borrowing costs since wake of eurozone debt crisis.

“Italy has paid the highest borrowing costs on its debt since the wake of the eurozone debt crisis, after the European Central Bank’s decision to withdraw stimulus measures sparked a sell-off in the bloc’s bond markets.”

https://www.ft.com/content/f9beb1a0-22ba-4f43-b4c0-0b0470747af4


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European Gas Has Third Weekly Rise as Supply Worries Deepen. Freeport LNG partial restart pushed back further to October…

““The extension of the outage yet again at Freeport will be a key blow for Europe, as securing supply for the winter” will be much harder, said Tom Marzec-Manser, head of gas analytics at ICIS in London. “As the outage length edges toward winter there will be increased concern about further extensions just as European demand begins to firm.””

https://www.bloomberg.com/news/articles/2022-07-01/european-gas-set-for-third-weekly-rise-as-supply-worries-deepen


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Germany Risks ‘Imminent’ Recession on Gas Cutoff, Deutsche Bank Says…

“European economies are facing a major new shock from slowing deliveries of Russian natural gas… “What is unfolding in Europe in recent days is a fresh big negative supply shock,” Deutsche Bank analysts wrote, citing a 60% fall in gas flows via the Nord Stream pipeline earlier this month.”

https://www.bloomberg.com/news/articles/2022-06-30/germany-risks-imminent-recession-on-gas-cutoff-deutsche-bank


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Germany in bailout talks with Uniper amid gas crisis.

“Germany’s Uniper (UN01.DE) is in talks about a possible government bailout as the financial fallout from dwindling supplies of Russian gas reverberates across Europe, sending shares in the energy company sliding.”

https://www.reuters.com/markets/europe/german-govt-talks-with-uniper-about-support-measures-2022-06-30/


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A German oil refinery will halt shipments of diesel—the lifeblood of the economy—and heating oil to customers starting tomorrow, according to Bloomberg sources.

“German oil refinery Bayernoil GmbH said it would halt deliveries for several days after suffering a lightning strike. The EU already has several refinery outages to contend with this month…”

https://oilprice.com/Latest-Energy-News/World-News/Germanys-Diesel-Situation-Just-Got-Worse.html


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Swiss gear up for hard times with bulked up food reserves.

“Switzerland wants to expand its emergency food reserves to make sure the neutral country is not hit by shortages of coffee, grain and sugar caused by over-extended supply chains, climate change and conflicts like Ukraine.”

https://www.reuters.com/markets/europe/swiss-gear-up-hard-times-with-bulked-up-food-reserves-2022-06-30/


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‘As bad as it was during lockdown’: NSW [Australia] food banks battle to keep up with demand…

“”The expenses are just too much now, especially for groceries. Any unexpected expenses … would be very difficult. “I can’t imagine surviving without the food deliveries … We had to cut out meat and fish, we can only buy the essentials…””

https://www.theguardian.com/world/2022/jul/01/as-bad-as-it-was-during-lockdown-nsw-food-banks-battle-to-keep-up-with-demand


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Amid heat-wave power crunch, Japan brings back rusty gas plants.

“Japan is already sweating out a dire power crunch as it heads into a boiling summer, introducing measures such as restarting retired gas plants to save power in order to shore up its scanty electricity supply.”

https://asia.nikkei.com/Business/Energy/Amid-heat-wave-power-crunch-Japan-brings-back-rusty-gas-plants


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Climate graphic of the week: Asia-Pacific remains stuck on coal for half its power needs.

“Growth in the region fuelled 6 per cent rise in global use of the dirtiest fossil fuel in 2021… This is despite the pledge from almost 200 countries at the UN COP26 summit in November to “phase-down” the use of coal to tackle climate change.”

https://www.ft.com/content/f58cf05a-dbaa-4359-9ae7-a1da37449f48


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Balochistan farmers [Pakistan] call hours of power cuts ‘economic murder of farmers’

“Farmers of Balochistan announced the closure of the Quetta-Karachi highway on July 4 against prolonged load shedding in the province by Quetta Electric Supply Company (QESCO) and termed the unannounced power cuts the “economic murder of farmers”, reported local media outlet.”

https://theprint.in/world/balochistan-farmers-call-hours-of-power-cuts-economic-murder-of-farmers/1020910/


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The Iranian Teachers’ Trade Organization led its latest in a long series of nationwide protests against the country’s clerical regime in late June.

“On the surface, the protests were demanding salary increases, still below the poverty line, as well as better working conditions. But on a deeper level, these and other protests over the state of the economy represent a clear challenge to the entire ruling system, one the majority of Iranians hold responsible for their hardships.”

https://www.politico.eu/article/teacher-protest-iran-mounting-challenge-regime/


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Turkey mulls capital controls amid currency crisis and record inflation.

“As President Recep Tayyip Erdogan has refused to allow interest rate rises, Turkey steps toward capital controls to support its national currency, the lira. Analysts say an economic slowdown may be on the way.”

https://www.dw.com/en/turkey-mulls-capital-controls-amid-currency-crisis-and-record-inflation/a-62326997


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Political and banking deadlock may plunge Lebanon deeper into crisis.

“Lebanon’s untamed financial crisis is gathering new menace as it heads into a fourth year, with political paralysis dampening hope of reforms that could unlock foreign support and stave off social turmoil… The emergency gripping the small country squeezed between Syria and Israel could snowball in the autumn…”

https://cyprus-mail.com/2022/07/01/political-and-banking-deadlock-may-plunge-lebanon-deeper-into-crisis/


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Fearing a collapse: Palestinian refugees and UNRWA’s worsening financial crisis.

“Fears are now growing that UNRWA may be ultimately dismantled. Were that to happen, it would dramatically worsen an already dire situation, leaving Palestinian refugees bereft of basic services and lacking protection of their fundamental human rights, and contributing to humanitarian crises across the region.”

https://www.mei.edu/publications/fearing-collapse-palestinian-refugees-and-unrwas-worsening-financial-crisis


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Protesters storm Libya’s parliament building amid political deadlock, power cuts.

“Several television channels said that protesters had managed to penetrate the building and committed acts of vandalism, while media outlets showed images of thick columns of black smoke coming from its perimeter as angry young protesters burned tyres.”

https://www.france24.com/en/africa/20220701-protesters-storm-libya-s-parliament-building-amid-political-deadlock-power-cuts


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Crisis-hit Ghana changes its mind and turns to IMF for help.

“Ghana, one of West Africa’s largest economies, will hold formal talks with the International Monetary Fund (IMF) on a support package, the government said on Friday, after hundreds took to the streets to protest against mounting hardship.”

https://financialpost.com/pmn/business-pmn/crisis-hit-ghana-changes-its-mind-and-turns-to-imf-for-help-4


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Growthpoint Properties Ltd., South Africa’s largest real estate investment trust, said its struggling to keep up with the demand for diesel to operate generators at some of its buildings amid power cuts

““Our resources are stretched to their limits. Our diesel providers have exhausted their diesel supply,” the company told clients in a letter dated Tuesday. “We kindly request that you make your own contingency plans to secure the integrity of your business and IT infrastructure.””

https://www.bloomberg.com/news/articles/2022-06-30/top-south-africa-reit-struggles-to-secure-diesel-amid-power-cuts


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A year after the riots, South Africa is a tinderbox waiting to be lit.

“Next week will mark a year since rioters tore through parts of KwaZulu-Natal and Gauteng, looting and vandalising stores and rattling business confidence in their wake. More than 300 people died and about R50-billion was wiped off the country’s economy.”

https://mg.co.za/business/2022-07-01-a-year-after-the-riots-south-africa-is-a-tinderbox-waiting-to-be-lit/


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‘Perfect storm’ of crises is widening global inequality, says UN chief.

“Humanity is facing a “perfect storm” of crises that is widening inequality between the north and south, the UN secretary general has warned. The divide is not only “morally unacceptable” but dangerous, further threatening peace and security in a conflicted world.”

https://www.theguardian.com/environment/2022/jul/02/perfect-storm-crises-widening-global-inequality-says-un-chief


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

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