“Vulnerable countries demand global tax to pay for climate-led loss and damage.
“The world’s most vulnerable countries are preparing to take on the richest economies with a demand for urgent finance – potentially including new taxes on fossil fuels or flying – for the irrecoverable losses they are suffering from the climate crisis, leaked documents show.”
“Coal rush! Energy crisis fires global hunt for polluting fuel… Prices for thermal coal, used to generate electricity, have leapt to record levels as a result of the war, which has led to many European countries losing access to vital supplies of natural gas and coal from their top provider Russia.
“Buyers in Europe and beyond are now vying to pay top dollar for coal from often remote mines in places such as Tanzania, Botswana and even potentially Madagascar.”
“In July, the European Parliament made a remarkable decision: it approved a law designating natural gas as a sustainable energy source…
“…Russia’s invasion of Ukraine has changed perceptions entirely. Instead of potentially stranding natural gas assets in the decade ahead, policymakers have shifted their attention to how they can keep the lights on and homes warm this winter. Tens of billions of euros of investment in gas projects will follow.”
https://www.ft.com/content/5221d57b-72e0-4769-b186-447e2e2b8972
“OPEC+ Is Now 3.6 Million Bpd Below Its Oil Production Target.
“The OPEC+ group continues to vastly underperform its collective oil production target, with the gap between the quota and actual output widening to a massive 3.58 million barrels per day (bpd) in August, according to delegates and OPEC data Argus has seen.”
“Lithium shortages ‘will mean cars must switch to hydrogen’…
“The latest quarterly update from the Advanced Propulsion Centre states that expected shortages of battery-grade lithium in this decade mean domestic manufacturers must prepare to “mitigate” against lacking supplies and to “diversify powertrain choice in the short to medium term”.”
“The U.S. dollar is experiencing a once-in-a-generation rally. For the rest of the world, that is a big problem. The dollar’s role as the primary currency used in global trade and finance means its fluctuations have widespread impacts…
“The surge threatens to exacerbate a slowdown in global growth and amplify inflation headaches for global central banks. In a worrying sign, attempts from policy makers in China, Japan and Europe to defend their currencies are largely failing in the face of the dollar’s unrelenting rise.”
https://www.wsj.com/articles/dollars-rise-spells-trouble-for-global-economies-11663437428
“Florida insurance crisis deepens as rates soar, companies fall.
“Long known as the nation’s most hurricane-prone state, Florida has achieved a new status that is aggravating hurricane anxieties and threatening real-estate values. Florida has the worst property-insurance market.”
“Puerto Rico’s Bankrupt Power Utility Heads Toward Litigation After Debt Talks End.
“Puerto Rico’s bankrupt power utility and bondholders may face off in court Wednesday in the wake of Hurricane Fiona’s damage after mediation talks over the agency’s $9 billion debt restructuring ended last week without a deal.”
https://uk.finance.yahoo.com/news/puerto-rico-bankrupt-power-utility-120000507.html
“Europe races to prepare for energy crunch this winter.
“Germany was pressing on Monday to secure liquefied natural gas contracts with Gulf producers and other European states outlined measures to conserve energy, with Russian flows running at severely reduced levels as winter approaches.”
“Europe’s Truckmakers Stockpile Gas as Energy Crisis Worsens…
“Mercedes-Benz Trucks, a unit of the world’s biggest commercial vehicle maker Daimler Truck Holding AG, is switching to oil for a large part of production at plants in Germany, according to division head Karin Radstrom. Volkswagen AG’s Traton SE, owner of the Scania and MAN brands, has a “huge” gas tank on the way and is going back to “good old coal,” said Chief Executive Officer Christian Levin.”
“‘Crippling’ Energy Bills Force Europe’s Factories to Go Dark.
“Manufacturers are furloughing workers and shutting down lines because they can’t pay the gas and electric charges… Makers of metal, paper, fertilizer and other products that depend on gas and electricity to transform raw materials into products from car doors to cardboard boxes have announced belt-tightening.”
https://www.nytimes.com/2022/09/19/business/europe-energy-crisis-factories.html
“Finland’s grid operator renews power outage warning…
“As a result of “great uncertainties, people in Finland should be prepared for power outages caused by possible electricity shortages this coming winter,” Fingrid Oyj said in an updated forecast of power availability… Last week, Finnish utility Fortum confirmed that in October, it will reactivate an idle coal-fired power plant on Finland’s west coast…”
https://www.aa.com.tr/en/europe/finland-s-grid-operator-renews-power-outage-warning/2689086
“Germany is heading into recession as inflation is set to top the 10-percent mark, the Bundesbank said in its monthly report on Monday.
““There are mounting signs of a recession in the German economy in the sense of a clear, broad-based and prolonged decline in economic output,” the report said. The central bank projects a moderate contraction for the current quarter and more pronounced declines in activity in the final quarter of this year and the first quarter of next year.”
https://www.politico.eu/article/bundesbank-germany-recession-inflation/
“Global recession is coming. New export orders for Germany (blue) – a key export engine of the global economy – have fallen off a cliff.
“This isn’t about Germany, but about weak global demand across Europe and China, which is weighing on German exports.
“Others aren’t far behind.”
https://twitter.com/RobinBrooksIIF/status/1571807455608283136
“Europe braces for far-right Italy this week.
“Last week the European Parliament’s turn provided the show in the European political scene… This week Europe is bracing for the shock of having a far-right leader head the eurozone’s third largest countries — which also happens to be one of most indebted.”
https://euobserver.com/agenda/156079
“Protests erupt across Austria demanding solution to cost of living crisis.
“On Saturday, September 17, trade unions and other working class sections hit the streets across Austria protesting the government’s inefficiency in tackling the ongoing cost of living crisis… People across Europe have been reeling under an acute cost of living crisis marked by soaring inflation in food and fuel prices.”
“Moldova: Thousands participate in anti-government protest amid high inflation.
“On Sunday, thousands of people took to the streets of the capital city outside Moldova’s government to denounce high inflation and fuel prices while also calling for the resignation of the country’s pro-Western president Maia Sandu and her government.”
“Frugal is the new cool for young Chinese as economy falters…
“This new frugality, amplified by social media influencers touting low-cost lifestyles and sharing money-saving tips, is a threat to the world’s second-largest economy, which narrowly avoided contraction in the second quarter. Consumer spending accounts for more than half of China’s GDP.”
https://www.reuters.com/world/china/frugal-is-new-cool-young-chinese-economy-falters-2022-09-18/
“Even State-Backed China Developers at Risk of Surging Default, Citi Says…
“Bad debt climbed to about 29.1% of total property loans in the first half of this year, up from 24.3% at the end of 2021, according to calculations by Citi’s team including Judy Zhang. The increase is largely attributable to developers controlled by the Chinese government, the analysis showed.”
“South Africa is facing a risk of an unprecedented level of blackouts this week after units at two of its coal-fired power plants broke down.
“Eskom Holdings SOC Ltd. earlier on Sunday began cutting 6,000 megawatts from the national grid, in what it calls Stage 6 power cuts, after generation units tripped at the Kusile and Kriel power stations. That’s sufficient energy to supply almost 4 million South African homes.”
“Turbulence in Nigeria dollar market hits airlines and investors.
“So tight is the supply of dollars in Nigeria these days that even big international airlines are struggling to repatriate revenue from ticket sales. Emirates announced it would suspend flights to and from Nigeria from September, only resuming flights to Lagos when the central bank released $265mn of the estimated $464mn that airlines say it was sitting on.”
https://www.ft.com/content/f69a9464-7f82-472c-95e9-37fb72cac88f
“From tea to cars, Egypt and Tunisia struggle to pay for imports…
“Supermarket shelves in Tunisia have been stripped bare in recent weeks. Cooking oil, coffee, sugar and butter are all hard to find, especially outside the capital. Some supermarkets even ration bottled water. Shoppers at malls in Cairo had a similar experience all summer: stocks of consumer goods, from clothing to furniture, are running low.”
“Israel risks crossing Hezbollah ‘red line’ as it prepares to connect to disputed gas field…
“Lebanon, which is still technically at war with Israel, claims part of the Karish field as its own. Events took a dramatic turn over the summer, after Energean brought a production vessel into the field in June despite protestations from Beirut that the reservoir should not be developed until US-mediated maritime border negotiations which began in 2020 are completed.”
“Lebanon currency hits new low, sparking protests…
“Amid the turmoil, the pound plunged to 38,600 against the greenback on Monday, according to websites monitoring the exchange rate, a record low for the beleaguered currency. For decades, the Lebanese pound was pegged at 1,507 to the dollar, meaning that it has lost around 95 percent of its black market value since 2019.”
https://www.france24.com/en/live-news/20220919-lebanon-currency-hits-new-low-sparking-protests
“Climate Change, Political Instability, Economic Crisis: Is Pakistan A Failing State?
“Pakistan has been delineated as a failing state by scholars, researchers, historians and analysts for some time. They base their argument on political and economic instability in the country since 1947. However, if there is anything that can brand Pakistan as a failing state, it is intensification of climate change.”
“Iran: Five killed in protests over death of Mahsa Amini who was detained for allegedly violating Iran’s hijab rules.
“Mahsa Amini, 22, fell into a coma and died after being arrested in Iranian capital, Tehran, on Friday. Police say she had a heart attack – but her father has insisted she had no health problems.”
“Massive protests after dozens of female students have videos ‘leaked’ in India…
“Punjab chief minister Bhagwant Mann has ordered a high-level investigation into the incident and appealed to students to avoid rumours after protests turned violent. On Sunday morning, several students claimed that videos of at least 60 students bathing were leaked on the internet and that subsequently some girls attempted suicide…”
https://www.independent.co.uk/asia/india/chandigarh-university-protest-video-leak-b2169749.html
“Photos: War-ravaged Sri Lankan Tamils suffer amid economic crisis…
“Under a blazing sun, a 44-year-old Tamil man tends his rented patch of peanut field in Sri Lanka, only able to move around on his hands because an air raid in 2009 took both his legs and injured his left arm. “I have more difficulties than a daily wage labourer,” said Singaram Soosaiyamutthu…”
“Misery deepens in Haiti as unrest rages and water shortages bite.
“Many residents of Haiti’s capital Port-au-Prince have been forced to shelter at home this week as gunfire broke out and burning tires blocked streets during protests over fuel price hikes and crime. The unrest slowed or halted companies that typically deliver water in the city…”
You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
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