“Video Shows Tanks Protecting Crisis-Hit Banks In China, Internet Says “History Repeats Itself”.
“…users on Reddit say that the footage is from Rizhao, in Shandong Province and the tanks have been deployed to protect the local branch of a bank at the heart of a scandal… An investigation into the banking scandal is going on.” *this article is inaccurate; my apologies. Please see my comment in the comment section below
“China’s debt bomb looks ready to explode…
“Perhaps because Beijing seems to be able to defy financial gravity, fewer people these days worry that its ballooning debt could unleash a systemic crisis. But there are many warning signs indicating that China may face a debt reckoning soon.”
https://asia.nikkei.com/Opinion/China-s-debt-bomb-looks-ready-to-explode
“China’s credit markets are creaking under the pressure of more setbacks, as a crisis in the nation’s property market fuels concerns about broader contagion.
“Chinese junk dollar bonds hovered near record lows Thursday. A partially state-backed firm sought delays paying its $1.6 billion of dollar notes, showing not even such borrowers are immune.”
https://www.yahoo.com/news/distressed-developer-china-south-city-002746519.html
“China reckons with its first overseas debt crisis…
“A Financial Times examination of the financial health of the Belt and Road Initiative — once hailed by Chinese leader Xi Jinping as the “project of the century” — has uncovered a mountain of non-performing loans. In several countries in Asia, Africa and Latin America, the project risks metastasising into a series of debt crises.”
https://www.ft.com/content/ccbe2b80-0c3e-4d58-a182-8728b443df9a
“Laos’s Economic Crisis Spiralling out of Control, as it Struggles With Massive Debts to China.
“… in recent months, Laos’ economy has crashed. Inflation of basic goods is skyrocketing, staple goods like cooking oil are becoming scarce, and the local currency is collapsing against the dollar. Laos, whose credit rating was downgraded by Moody’s in June to junk rating, is now near default on its sovereign debts.”
“The world isn’t prepared for a wave of sovereign debt defaults. Many emerging markets will need painful bond writedowns from China and private creditors…
“Resolving the forthcoming emerging market debt crisis is likely to be even slower and more painful than usual now that China is involved.”
https://www.ft.com/content/c4d17d8e-66f6-48fb-9a64-c8ebdfd46dcb
“US Housing Affordability Is Set to Drop to 2007 Levels This Year, S&P Says…
“By the end of this year, mortgage payments will make up 28% of income for the typical first-time buyer — the highest since the first quarter of 2007 — assuming a 10% down payment, S&P North American Chief Economist Beth Ann Bovino said in a report.”
“The Oakland International Container Terminal management closed operations on Wednesday at the Port of Oakland due to the independent trucker protests over California’s gig worker law, known as AB5.
“The Port’s other three marine terminals are effectively shut down for trucks as well… This is the third-day truckers have protested California’s gig worker labor law… These are the largest trucker protests to date over the law.”
“UK inflation at 40-year high fuels simmering discontent…
“The bigger than expected increase in the year to June of 9.4 per cent, the highest in the G7, was driven by sharp rises in the prices of food, up 9.8 per cent, and petrol prices, up 18.1 pence per litre, the biggest jump since records began in 1990.”
https://www.ft.com/content/8644ddb1-2fbe-40f6-9f69-c29c31bb1539
“Russia’s military focus in Ukraine is no longer “only” the east, Foreign Minister Sergei Lavrov has said.
“In an interview with Russian state media, he implied Moscow’s strategy had changed after the West supplied Ukraine with longer-range weapons. Russia would now have to push Ukrainian forces further from the front line to ensure its own security, he explained.”
https://www.bbc.co.uk/news/world-europe-62231936
“Russia resumes gas supply to Europe via Nord Stream at lower capacity… Resumption of 40% of supplies is insufficient to ward off energy crisis in Europe this winter, say experts…
“The European Commission on Wednesday urged EU countries to reduce demand for natural gas by 15% over the coming months to secure winter stocks and defeat Russia’s “blackmail”.”
“Gas rationing will not save Europe from a winter crisis… The European Commission insists acting now, while gas demand is lower during summer, will reduce the overall economic impact and help ease market concerns.
“Damage is already being done, however. “Some of these measures will cost industry a lot,” says Jacob Mandel, at Aurora Energy. Goldman Sachs adds: “Substitution towards fuels like oil or coal for industrial boilers would not be without its challenges.””
https://www.telegraph.co.uk/business/2022/07/21/gas-rationing-will-not-save-europe-winter-crisis/
“Europe’s Power Crunch Cuts Zinc and Aluminum Capacity in Half.
“Europe has lost about half of its zinc and aluminum smelting capacity within the past year, and a further surge in power prices could knock more plants offline over winter, the region’s biggest metal producers warned.”
“Europe Does A Complete U-Turn On African Oil And Gas.
“As European governments race to secure every drop of natural gas that they can, consumers in countries like Nigeria and Mozambique are losing out. The hypocrisy of Europe asking for oil and gas from countries that, just last year, it had told to keep fossil fuels in the ground only makes it harder to take.”
https://oilprice.com/Energy/Energy-General/Europe-Does-A-Complete-U-Turn-On-African-Oil-And-Gas.html
“ECB Faces the Classic Emerging-Market Dilemma.
“The ECB will be pressured to maintain its hawkish stance — even when data deteriorate and a Europe-wide recession sets in — as the risk of capital outflows mounts… Europe’s once formidable balance-of-payments surplus with the rest of the world is diminishing rapidly.”
https://financialpost.com/pmn/business-pmn/ecb-faces-the-classic-emerging-market-dilemma
“Italy’s financial markets are bracing for investors’ reaction on Thursday to the collapse of the government of Prime Minister Mario Draghi…
““Italy’s political crisis unfolds just as the European Central Bank (ECB) prepares to unveil its anti-fragmentation tool. One needs to hope markets will perceive it as sufficiently bold because, if not … Italy could well be in the markets’ cross-hairs given the situation.”
https://financialpost.com/pmn/business-pmn/italy-faces-market-test-after-draghis-govt-crumbles
“Japan bought its most expensive ever natural gas shipment as an escalating global energy crunch brings new risks of blackouts and intensifies competition for fuel imports.
“Nippon Steel Corp. purchased a liquefied natural gas cargo for delivery in September in the low-$40 per million British thermal units range, according to traders with knowledge of the matter.”
“Three weeks of continuous demonstrations and road blockades to protest high fuel and food costs in Panama have begun to cause shortages of some food products, fuel and medicine.
“The closures, including of the Pan-American Highway, have forced the national electric company to ration electricity in Darien province, which borders Colombia.”
https://abcnews.go.com/International/wireStory/weeks-protests-panama-food-fuel-shortages-87141880
“Cuba blackouts bring misery amid sweltering heat.
“Long and frequent blackouts coupled with sweltering summer heat are bringing misery to many in Cuba, which has been suffering power outages for months amid rising oil prices and a deepening economic crisis. And things are unlikely to get better any time soon…”
https://www.france24.com/en/video/20220720-cuba-blackouts-bring-misery-amid-sweltering-heat
“Hundreds protest to demand Puerto Rico scrap contract with power grid operator…
“Demonstrators including union leaders and community activists say LUMA has steadily increased power rates despite frequent outages including one in April that left more than one- third of the island in darkness.”
“Across Haiti, fuel shortages and power outages bring life to a halt.
“In addition to their deadly battles in Port-au-Prince, where at least 234 people have been killed or injured in the Cite Soleil neighborhood since early July, Haitian gangs have also hampered activity at the country’s three main oil terminals.”
“Price Pressures Build in Nigeria as Diesel Costs Surge 200%…
“Nigerian businesses and most of its population rely on the fuel because of a shortage of power. Poor maintenance and insufficient investment in the transmission network have resulted in only about a third of the country’s installed capacity being dispatched by the grid daily — a fraction of what’s needed…”
“South Africa’s power cuts take a toll on mental health.
“You can’t do your work because there’s no power. You eat late and bolt your food before the lights fail. And then to be at home, in the utter dark, gives you the creeps… in recent weeks, the country has been hit by rolling blackouts that can last up to nine hours a day.”
“Zimbabweans Preparing for Mass Protests.
“Crisis in Zimbabwe Coalition’s Peter Mutasa says Zimbabweans will map the way forward on Thursday after giving the Emmerson Mnangagwa government a notice to stage peaceful protests in the country. Mutasa says they will go to court if the police deny them permission…”
https://www.voazimbabwe.com/a/zimbabweans-preparing-for-mass-protests/6667032.html
“Employees at Lebanon’s central bank have begun a three-day strike after a prosecuting judge attempted to arrest the bank’s governor…
“Aoun has charged Salameh with falsifying the budget of Lebanon’s central bank to hide losses… The judge told Al Jazeera on Wednesday that she was uncertain about whether she would try to arrest Salameh again.”
https://www.aljazeera.com/news/2022/7/20/lebanon-central-bank-workers-strike-after-judge-raids-hq
“Sri Lanka braced for more unrest as new president vows crackdown on ‘fascist’ protests…
“Speaking after being MPs picked him as successor to Gotabaya Rajapaksa, Wickremesinghe made it clear he would not tolerate those he perceived to be stirring up violence. “If you try to topple the government, occupy the president’s office and the prime minister’s office, that is not democracy; it is against the law,” he said.”
https://www.theguardian.com/world/2022/jul/21/sri-lanka-unrest-new-president-crackdown-protests
“End of the line: Fed-up Sri Lankans rush for passports.
“One of the longest queues in the Sri Lankan capital Colombo is for the exit, as thousands of people line up outside the immigration office seeking passports to escape the country’s economic crisis. Every day, about 3,000 people submit their papers and 15,000 rupees (USD 42) to obtain travel documents.”
https://www.france24.com/en/live-news/20220721-end-of-the-line-fed-up-sri-lankans-rush-for-passports
“Global chip shortage far from over and now semiconductor market faces slowdown.
“The global shortage of semiconductors might not be over yet, at least according to IDC, but a slowdown in the market is coming as consumer demand falls away and the supply side faces a new heap of challenges.”
https://www.theregister.com/2022/07/20/global_chip_shortage_not_over/
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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Apparently the China/tank thing isn’t true.
Chris, thank you. Facebook has already upbraided me for this. NDTV often has an anti-Chinese slant so my antennae probably should have pricked up. Clearly China is on the cusp of a debt crisis and the response to protestors has been draconian, so it did not seem beyond the realms of possibility. Apparently the tanks were part of a military exercise in the Yellow Sea region that borders Rizhao where the footage was shot.