“Labor Unrest Disrupts Supply Chains From Sky to Sea.
“…after years of stagnating wages, workers want to get paid. They’re tired of seeing their incomes evaporate as inflation surges, especially those in logistics or other front-line industries that kept economies functioning during the pandemic.”
“IMF chief says ‘cannot rule out’ possible global recession.
“The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had “darkened significantly” since April and she could not rule out a possible global recession next year given the elevated risks.”
“Copper price crash deepens as recession fears loom over metals trading…
“The last quarter was the worst for metals since the financial crisis in 2008, and July has brought little relief as fears of a recession dominate markets. It’s a rapid turnaround from March, when the LMEX Index of six metals soared to an all-time high amid fears that Russia’s attack on Ukraine would fuel shortages.”
https://www.mining.com/web/copper-crash-deepens-as-recession-fears-loom-over-metals-trading/
“Red flag: [US] Consumers are using Buy Now, Pay Later to cover everyday expenses…
“While other household debt, such as credit card spending and auto loans, is gathered and tracked by the Federal Reserve, Buy Now, Pay Later (BNPL) data is not included because the financing is typically provided by non-bank sources and not yet reported in a comprehensive manner to credit bureaus.”
https://edition.cnn.com/2022/07/06/economy/buy-now-pay-later-bnpl-inflation-data/index.html
“Bank of England warns that economic outlook has ‘deteriorated materially’…
““The economic outlook for the UK and globally has deteriorated materially,” the BoE said in its latest Financial Stability Report. “Prices of essential goods such as food and energy have risen sharply in the UK and globally, and the outlook for growth has worsened.”
https://www.theguardian.com/business/2022/jul/05/bank-of-england-economic-outlook-uk-ukraine-war
“UK Grid Turns Screws on Industry to Cut Winter Gas Use.
“Britain’s grid operator is set to crank up the pressure on big energy users, taking a more forceful stance on curbing their natural gas consumption as it tries to head off the threat of fuel shortages.”
“Dutch farmers’ protests over emission cuts resume after police fire shots…
“Police say they fired warning shots late on Tuesday and arrested several people after protesting farmers started driving their tractors toward officers at a highway entry lane in Friesland. But the protesters contest the police’s statement, claiming they posed no threat to the officers.”
“Social unrest over spiralling living costs spreads to France’s railways.
“Railway workers in France went on strike on Wednesday, disrupting travel across the rail network days before the summer holidays begin and at a time of unrest in other areas of the economy as high inflation eats into salaries.”
“New French PM vows to nationalise EDF and tackle cost of living crisis…
“Elisabeth Borne vowed to limit the impact of rising energy prices despite the political turmoil of Emmanuel Macron losing control of parliament in recent legislative elections. “We must have full control over our electricity production and performance,” Borne told parliament in her first state-of-the-nation speech to parliament…”
“Norway’s government steps in to end oil and gas strike, averting a new energy shock for Europe…
“Natural gas prices spiked after Norwegian oil and gas workers went on strike over a pay dispute Tuesday, shutting three fields in the North Sea and threatening to escalate action over the course of the week… The Norwegian government has proposed a compulsory wage arbitration to settle the dispute…”
https://edition.cnn.com/2022/07/05/energy/norwegian-gas-strike-europe-energy-crisis/index.html
“Russia is set to switch off the gas for work on a key pipeline [Nord Stream 1] — and Germany fears the worst…
“No gas is expected to be transported via the pipeline once the annual inspection gets underway, Bundesnetzagentur’s Mueller said, adding: “We cannot rule out the possibility that gas transport will not be resumed afterwards for political reasons.” Analysts at political risk consultancy Eurasia Group agree.”
https://www.cnbc.com/2022/07/05/germany-fears-russian-gas-flows-could-be-about-to-stop-for-good.html
“Power prices in Europe smashed through records as Russia’s tightening squeeze on energy supplies is prompting government action to keep the lights on.
“In another blow for consumers already struggling with surging costs, power prices in Germany jumped to a record as fears about looming gas shortages may mean the government needs to limit output from plants burning the fuel.”
“Amid energy crisis, E.U. says gas, nuclear can sometimes be ‘green’.
“European lawmakers voted Wednesday to move ahead with a plan to label some nuclear and natural gas power as “green” energy, a closely watched decision that could shape climate policy for years to come.” …Many fear the bloc is getting weak-kneed when it comes to climate goals.”
https://www.washingtonpost.com/world/2022/07/06/eu-parliament-nuclear-gas-green/
“ECB tells banks to factor in recession in shareholder payouts.
“Euro zone banks should factor in the risk of a recession when calculating how much capital they can pay out to shareholders, the European Central Bank’s top supervisor Andrea Enria said on Thursday.”
“Argentina: Protests planned in multiple locations of the city and province of Buenos Aires.
“Civic groups, including members of Unidad Piquetera, intend to protest across various locations in the city of Buenos Aires and surrounding areas of the Buenos Aires Province, July 7. The activists are demanding jobs and denouncing poor economic conditions.”
“Brazil at risk of unrest more severe than Jan 6 U.S. riots, warns elections chief…
“Bolsonaro has cast doubts on the voting system, without evidence, going as far as threatening to reject an unfavorable outcome in the elections. read more. “We may experience an episode even more severe than the January 6 (attack) on the Capitol,” Fachin said in a presentation at the Wilson Center in Washington.”
“Eleven days without water — load shedding in Eastern Cape [South Africa] wrecks Middelburg borehole pumps.
“After close to two weeks of water outages caused by a load shedding-related burnout of borehole pumps, the Midros community in Middelburg began getting water out of their taps on Wednesday — 11 days after a bout of nationwide power cuts.”
“Zimbabwe will start issuing gold coins as legal tender in late July, its central bank has said, as the country battles to control runaway inflation that has considerably weakened the local currency.
“The inflation rate more than doubled last month to 191%, stoking memories of the hyperinflation of the 2000s that saw the Zimbabwean dollar redenominated three times before being effectively abandoned in 2009.”
“Fuel shortages at pump stations in Ethiopia worsened this week, with motorists in the capital Addis Ababa waiting as long as eight hours to refill.
“The pain is poised to bite harder after the government on Tuesday announced a 38% increase in the price of diesel as it plans to stop subsidizing fuel. Commuters were seen waiting for hours before they could get rides.”
“Tunisia’s Twin Democracy and Economic Crises Push it to the Brink.
“Tunisia faces a dire economic predicament. Public sector spending (largely due to pensions, salaries and government subsidies) consumes the state’s budget. According to the World Bank, public debt as of 2020 was 70 percent above GDP, current debt levels could be much higher…”
https://www.usip.org/publications/2022/07/tunisias-twin-democracy-and-economic-crises-push-it-brink
“A warning from Turkey – this is what hyperinflation looks like…
“Turks are stuck in Recep Tayyip Erdoğan’s topsy-turvy world where official statistics are discredited, religion is driving central bank policy and everyone from egg producers to foreign forces are blamed for the highest inflation in decades.”
https://www.telegraph.co.uk/business/2022/07/06/warning-turkey-what-hyperinflation-looks-like/
“Protesters march through Beirut against Lebanon price surges [and attempt] to break into the headquarters of MTC Touch, one of the two state-contracted telecoms companies.
“The demonstrations, in which a handful of protesters clashed with security forces, came days after a major jump in the cost of phone and internet services…”
“India’s export curbs, tax hike to exacerbate global diesel, gasoline shortage.
“India’s latest measures aimed at boosting domestic oil supplies could reduce its diesel and gasoline exports in the second half of the year, keeping global supplies tight and underpinning prices, traders and analysts said.”
“Fueling Nepal’s economic crisis. As finance minister resigns, Nepal is trapped in an economic-energy crunch…
“There are many indications that the crisis is deepening. The clearest yet was Nepal Oil Corporation asking the government this week to implement 10 austerity measures to reduce petroleum consumption, including by reimposing the two-day weekend, odd-even traffic rule, quota at filling stations, discouraging vehicle use and a ban on import of petrol and diesel vehicles.”
https://www.nepalitimes.com/banner/fueling-nepals-economic-crisis/
“Sri Lanka’s economic crisis is driving people to flee the country in desperation…
“With no signs of the crisis letting up, and no bailout from the IMF in sight, many Sri Lankan refugees are traveling illegally by boats to nearby countries like India and Australia in a desperate bid to escape the unfolding disaster.”
“One-Tenth of the World Is Hungry, and War Risks Worsening the Crisis…
“The number of undernourished people rose by about 6% to roughly 768 million last year, an annual report by United Nations agencies shows… Russia’s invasion of Ukraine is adding to the challenges ahead…
“U.S. crypto lender Voyager Digital said on Wednesday it had filed for bankruptcy, becoming another casualty of a dramatic fall in prices that has shaken the cryptocurrency sector…
“In its Chapter 11 bankruptcy filing on Tuesday, Voyager – based in New Jersey but listed in Toronto – estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets, and liabilities worth the same value.”
https://www.msn.com/en-gb/money/other/crypto-lender-voyager-digital-files-for-bankruptcy/ar-AAZfvr5
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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