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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World’s Key Workers Threaten to Hit Economy Where It Will Hurt…

A surge in strikes and other labor protests is threatening industries all over the world, and especially the ones that involve moving goods, people and energy around. From railway and port workers in the US to natural-gas fields in Australia and truck drivers in Peru, employees are demanding a better deal as inflation eats into their wages.

“Precisely because their work is so crucial to the world economy right now –- with supply chains still fragile and job markets tight –- those workers have leverage at the bargaining table. Any disruptions caused by labor disputes could add to the shortages and soaring prices that threaten to trigger recessions.”

https://www.bloomberg.com/news/articles/2022-07-24/world-s-key-workers-threaten-to-hit-economy-where-it-will-hurt


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U.S. housing cooldown is recession red flag for markets.

“With the Federal Reserve set to jack up interest rates again this week, Wall Street is on alert for signs of recession, and recent housing data suggests the sector may be a harbinger of a cooling economy. Homebuilder stocks, sales and mortgage data show that previously booming housing market is falling back to earth amid a broader economic cooldown.”

https://www.reuters.com/markets/europe/us-housing-cooldown-is-recession-red-flag-markets-2022-07-25/


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Recession Worries Grow Among Credit Investors, Survey Shows.

“Credit investors, on average, now see a 53% probability of a U.S. recession, up from 39% in May, according to Bank of America. Over a third of investors surveyed now see a greater than 60% chance of a recession. While inflation still remains investors’ top concern, worries about recession have risen rapidly.”

https://www.wsj.com/livecoverage/stock-market-news-today-25-7-22/card/recession-worries-grow-among-credit-investors-survey-shows-rzCc4OFu0PQ5E39xda0f


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Nouriel Roubini says predictions for a mild recession are ‘delusional’ as severe financial crisis looms…

“Nouriel Roubini dismissed hopes that an incoming recession will be shallow. The famed economist, who called the 2008 financial crash, told Bloomberg that the economy is headed for a severe recession as well as a severe debt and financial crisis.”

https://markets.businessinsider.com/news/stocks/us-recession-odds-nouriel-roubini-mild-severe-financial-crisis-predictions-2022-7


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The 150% Energy-Price Shock Waiting for the Next UK Leader.

“Every UK prime minister expects to face challenges. Few would imagine that they might have to spend billions of pounds to make sure people don’t freeze in their homes during winter. That’s the dramatic situation Boris Johnson’s successor, either Liz Truss or Rishi Sunak, will face…”

https://www.bloomberg.com/news/articles/2022-07-25/the-150-energy-price-shock-waiting-for-the-next-uk-leader


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Britain forced to beg Belgium for power to keep the lights on.

“National Grid was forced to issue an emergency appeal to Belgium to keep Britain’s lights on as the market was roiled by surging prices ahead of a looming winter crisis… Experts said it cast doubt on the Grid’s ability to cope during the “looming iceberg” of winter, when gas supplies are expected to be under far more severe pressure…”

https://www.telegraph.co.uk/business/2022/07/24/britain-forced-beg-belgium-power-keep-lights/


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France to fine shopkeepers running heating or air conditioning with doors open.

“Shopkeepers in France who use air conditioning with their doors left open or who leave illuminated signs on at night could be fined hundreds of euros under major new plans to slash energy consumption in the country.”

https://www.independent.co.uk/climate-change/news/france-air-conditioned-shops-fines-b2130504.html


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Germany on cusp of recession, says Ifo, as business sentiment sinks.

“German business morale fell more than expected in July, the Ifo business sentiment survey showed on Monday, as the institute that compiles it said high energy prices and looming gas shortages had left Europe’s largest economy on the cusp of recession.”

https://www.reuters.com/markets/europe/germany-cusp-recession-says-ifo-after-business-sentiment-falls-2022-07-25/


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German industry cuts production due to high energy prices: DIHK survey.

“A number of industrial companies in Germany are cutting production in reaction to soaring energy prices, a survey by the country’s Chambers of Industry and Commerce (DIHK) showed on Sunday… Russia’s invasion of Ukraine in February has had major implications for governments and businesses across Europe…”

https://www.hellenicshippingnews.com/german-industry-cuts-production-due-to-high-energy-prices-dihk-survey/


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Russia’s Gazprom to make drastic cut to Europe’s gas supply from Wednesday…

“The Russian gas export monopoly said it was halting the operation of one of the last two operating turbines due to the “technical condition of the engine”, cutting daily gas deliveries via the Nord Stream pipeline to 33m cubic metres a day – about 20% of the pipeline’s capacity [ie insufficient to fill winter storage].”

https://www.theguardian.com/world/2022/jul/25/russias-gazprom-to-make-drastic-cut-to-europes-gas-supply-from-wednesday


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Ukraine war, energy crisis and Italy’s political turmoil call euro’s survival into question.

“Who would blame anyone for thinking that Europe is finished? Russian President Vladimir Putin might have achieved his aim to crack European unity, with the economy suffering on a number of fronts. The war in Ukraine, the energy crisis and political turmoil in Italy are throwing the European Union into chaos and it’s no surprise that the euro is in deep trouble.”

https://www.scmp.com/comment/opinion/article/3186443/ukraine-war-energy-crisis-and-italys-political-turmoil-call-euros


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Italy preparing stimulus package worth up to $13.3 billion, Treasury official says.

“Italy is preparing a new stimulus decree worth up to 13 billion euros ($13.3 billion) to help families and firms deal with a surge in electricity, gas and petrol costs, deputy Economy Minister Laura Castelli said on Monday. The new scheme, which comes on top of some 33 billion euros already budgeted since January…”

https://www.reuters.com/markets/europe/italy-preparing-stimulus-package-worth-up-133-bln-treasury-official-2022-07-25/


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More than 1,000 migrants arrive in Italy within hours, authorities say.

“On the island of Lampedusa, some 522 people from Afghanistan, Pakistan, Sudan, Ethiopia and Somalia, among others, arrived from the late hours of Saturday in 15 different boats from Tunisia and Libya… the island’s reception centre has been overwhelmed… The latest inflow of migrants comes at a politically sensitive time in Italy.

https://www.france24.com/en/europe/20220724-more-than-1-000-migrants-arrive-in-italy-within-hours-authorities-say


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A new wave of migration is coming – and Europe is not ready for it.

“In a week when Russia threatened to annex more territory in Ukraine, gas shortages loomed, and inflation and Covid surged across Europe, it seems almost unkind to remind EU and UK leaders of another crisis that is unfolding, largely unremarked, right under their noses… Europe now also faces rapidly rising new “waves” of undocumented asylum seekers.”

https://www.theguardian.com/commentisfree/2022/jul/24/europe-migration-new-wave


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China’s Property Crisis Burns Middle Class Stuck With Huge Loans…

“Now, as property developments stall across the country and house prices fall, many Chinese homeowners are slashing spending, postponing marriage and other life decisions, and, in a growing number of cases, withholding mortgage payments on unfinished homes.”

https://www.bloomberg.com/news/articles/2022-07-24/china-s-property-crisis-burns-middle-class-stuck-with-huge-loans


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China’s Slowdown Spills Over to Major Economies Through Imports…

“Elevated global commodity prices meant that China’s official import growth of 1% in June from a year earlier hid a worse result for manufactured goods. Imports of hi-tech products and mechanical and electrical goods fell about 8% last month, according to recently released Chinese customs data. There doesn’t seem to have been an improvement this month…”

https://www.bloomberg.com/news/articles/2022-07-25/china-s-slowdown-spills-over-to-major-economies-through-imports


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Argentines turn to black market dollars as crisis worsens.

“Confidence in the Argentine economy is evaporating as the government struggles with political infighting, an ever-increasing pile of domestic debt and inflation hurtling towards 90 per cent. The US dollar has shot to new highs on the black market…”

https://www.ft.com/content/a27ee254-6042-4632-a161-8ae005bdab1c


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Inflation-hit Zimbabweans forced to find side hustles to survive…

“Surging food and fuel prices have revived memories of the hyperinflation that plagued the southern African nation in the late 2000s, sparking labour unrest and prompting the central bank to start selling gold coins this month.”

https://www.newzimbabwe.com/inflation-hit-zimbabweans-forced-to-find-side-hustles-to-survive/


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Uganda police fire teargas to quell protest over fuel prices.

“Police arrested more than 40 people in Uganda on Monday as security forces used teargas and “other tactics” to quell a large protest against sky-high fuel prices, a police spokesman said.”

https://www.reuters.com/world/africa/uganda-police-fire-teargas-quell-protest-over-fuel-prices-2022-07-25/


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Arrests as Madagascar Opposition Protest Living Costs…

“Several hundred anti-government demonstrators gathered in the center of Antananarivo in the morning, watched by a heavy military and police presence. Police said they arrested Rina Randriamasinoro, the secretary general of the opposition Tiako I Madagasikara (TIM) party, and its national coordinator Jean-Claude Rakotonirina…”

https://www.voanews.com/a/arrests-as-madagascar-opposition-protest-living-costs-/6671485.html


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Tunisia’s Saied holds referendum, critics fear for democracy.

Economic decline since 2011 has left many people angry at the parties that have governed since the revolution and disillusioned with the political system they ran. A turnout on Monday far below that rate [of 41% in 2019] would further call into question the legitimacy of the new constitution.”

https://www.euronews.com/2022/07/25/uk-tunisia-politics-referendum


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Hamas-run government in Gaza to reduce salaries amid growing financial crisis…

“Speaking to The New Arab, Awni al-Basha, undersecretary of the Gaza Finance Ministry, said that reducing employees’ salaries was a decision born out of an emergency and seeks to temporary alleviate the government as financial crises worsens.”

https://english.alaraby.co.uk/news/hamas-govt-gaza-reduces-salaries-amid-financial-crisis


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Shortages leave bankrupt Sri Lanka’s hospitals empty.

“Entire wards are dark and nearly empty in Sri Lanka’s largest hospital, its few remaining patients leaving untreated and still in pain, and doctors prevented from even arriving for their shifts. An unprecedented economic crisis has dealt a body blow to a free and universal healthcare system that just months earlier was the envy of the country’s South Asian neighbours.”

https://www.france24.com/en/live-news/20220726-shortages-leave-bankrupt-sri-lanka-s-hospitals-empty


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The madness of the oil market. In the past two years, oil has been traded as cheaply as $19 a barrel (or below zero if you were buying a US blend called West Texas Intermediate) and as high as $139 a barrel

We have not seen such huge swings in the oil price since the 2008 financial crisis, when oil crashed from $150 a barrel to below $40 as fears of a global recession saw demand collapse. [Highly stressed global economic superorganism is suffering labile hypertension, we could say.]”

https://www.ft.com/content/2a2571f4-b4bc-4587-8028-b6084a07a827


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

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