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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IMF bailouts hit record high as global economic outlook worsens… Fund hands out $140bn in loans as interest rate rises push up countries’ borrowing costs…

Experts predict that further large rate rises by major market central banks will push up borrowing costs around the world and risk triggering a severe recession. Some analysts say the IMF’s lending capacity could soon be stretched to its limits, as poor countries which are locked out of international debt market are forced to turn to the fund for support…

“Zambia and Sri Lanka — which both defaulted in the pandemic along with Lebanon, Russia and Suriname — are negotiating IMF bailouts as part of efforts to restructure their debts. Ghana, Egypt and Tunisia are in early talks for similar support.

“The IMF approved a $1.1bn bailout for Pakistan at the end of August; Argentina is set to receive $3.9bn in the next few weeks as part of its $41bn programme.”

https://www.ft.com/content/eddedee3-669d-42cc-9597-33609a8bff99


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A key gauge for raw materials prices has tumbled to the lowest in eight months amid mounting fears of a global recession.

“The Bloomberg Commodity Spot Index, which tracks futures contracts for everything from oil to copper and wheat, fell 1.6% to settle at its lowest level since Jan. 24. The measure has lost almost 22% since peaking in June and has erased all of its gains since Russia’s invasion of Ukraine.”

https://www.bloomberg.com/news/articles/2022-09-26/commodities-gauge-falls-to-lowest-in-8-months-on-recession-fears


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Oil Prices Drop as Dollar Soars and Global Recession Fears Grow.

“Oil prices continued to plummet on Monday, plunging to their lowest levels since January and continuing weeks of decline as fears of a looming global recession mount, inflation rates remain historically high and the strong performance of the U.S. dollar dampens demand.”

https://www.forbes.com/sites/roberthart/2022/09/26/oil-prices-plummet-as-dollar-soars-and-global-recession-fears-grow/?sh=3119da76e6a3


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Hedge funds dump distillates as recession risks intensify.

“Portfolio investors anticipate an imminent recession that will hit consumption of middle distillates such as diesel especially hard, based on recent position changes in futures and options markets… Middle distillates such as diesel and gas oil are mostly used in freight transportation, manufacturing and mining, so they are heavily geared to the business cycle.”

https://www.reuters.com/markets/commodities/hedge-funds-dump-distillates-recession-risks-intensify-kemp-2022-09-26/


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Central Banks May Stoke Risks by Raising Interest Rates Together… The most widespread rate increases on record have some economists worrying…

“…some worry that central banks are effectively pursuing national responses to what is a global problem of excess demand and high prices. They warn that central banks as a group will thus go too far—and push the world economy into a downturn that is deeper than necessary.”

https://www.wsj.com/articles/central-banks-may-stoke-risks-by-raising-interest-rates-together-11664110802


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Global recession fears and collapse in confidence could turn the dash for cash into a stampede.

“Investors are running for cover as recession beckons, inflation and interest rates rise and global economic confidence withers. Despite many turning to the US dollar as a safe haven, the continued rise in interest rates suggests cash will soon be king.”

https://www.scmp.com/comment/opinion/article/3193791/global-recession-fears-and-collapse-confidence-could-turn-dash-cash


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U.S. dollar strength creating ‘untenable’ situation that risks financial crisis -Morgan Stanley.

“The wild swings in currencies are another pressure on the global economy and corporate earnings, which are expected to fall as the Federal Reserve’s aggressive interest rate hikes over the summer begin to weigh on spending.”

https://www.reuters.com/markets/europe/us-dollar-strength-creating-untenable-situation-that-risks-financial-crisis-2022-09-26/


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This Has Not Happened Since 1929… U.S. monetary policy continues to tighten while signs of recession abound and a major speculative bubble unwinds.

This was last attempted in late 1929 and exacerbated the ensuing stock market crash. Severe volatility should be expected if the Federal Reserve chooses to continue on its current path.”

https://seekingalpha.com/article/4543064-this-has-not-happened-since-1929


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Consumer Debt Hits Record for Most Americans, Except the Wealthy…

“Consumer debt, including credit cards, rose to an all-time high for the 118 million US households among the bottom 90%, according to the Federal Reserve’s latest data on the distribution of household wealth. The group’s debt soared by $300 billion over the last year — the largest annual gain on record — as households deal with higher prices for everything from food to clothing and rents.”

https://www.bloomberg.com/news/articles/2022-09-26/consumer-debt-at-record-for-most-americans-except-the-wealthy


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Food inflation forcing Canadians to get desperate…

“Some have opted to grow their own food. A total of 15.5 per cent of Canadians have started growing their own food just in the last year. Ontario is where the highest percentage of people started to grow their own food. Others are just trying to navigate through by using new options.”

https://www.thespec.com/opinion/contributors/2022/09/26/food-inflation-driving-consumer-desperation.html


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UK bond prices collapse after sterling hits record low.

“British government bond prices collapsed on Monday, pushing yields to their highest in over a decade, amid speculation that the Bank of England might need to take emergency action after sterling hit a record low against the U.S. dollar overnight.”

https://www.reuters.com/markets/europe/uk-bond-prices-collapse-after-sterling-hits-record-low-2022-09-26/


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Hedge funds made huge gains before the pound crash… [pictured, Crispin Odey – one of the beneficiaries]

Concerns have emerged… that leaks of the mini-budget allowed funds to short the pound. A member of the government’s opposition party, Labour Treasury Secretary Tulip Siddiq, has called for the Financial Conduct Authority to carry out a probe into whether information of fiscal policy was leaked…”

https://www.marketwatch.com/story/hedge-funds-made-huge-gains-before-the-pound-crash-11664198752


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Regulators are preparing to slash red tape in the North Sea in a bid to speed up the development of oil and gas wells, as part of Liz Truss’ dash for new energy supplies

“The North Sea Transition Authority (NSTA) is also trying to identify areas that can be developed quickly as they have known reserves and are close to existing pipes and rigs, which it will try to licence ahead of others.”

https://www.telegraph.co.uk/business/2022/09/25/north-sea-licences-sped-race-oil-gas/


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Cost-of-living protest: Thousands turn out for Dublin march…

Ireland will face a new era of “forced emigration” unless the cost of living crisis is tackled by the Government, a rally in Dublin heard on Saturday… Addressing the crowd, Sinn Féin president Mary Lou McDonald said the Government must ban any rent increases for at least three years.”

https://www.irishtimes.com/politics/2022/09/24/cost-of-living-protest-thousands-turn-out-in-dublin-as-march-hears-social-contract-has-been-broken/


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Lights out, ovens off: Europe preps for winter energy crisis.

“As Europe heads into winter in the throes of an energy crisis, offices are getting chillier. Statues and historic buildings are going dark. Bakers who can’t afford to heat their ovens are talking about giving up, while fruit and vegetable growers face letting greenhouses stand idle.”

https://apnews.com/article/russia-ukraine-germany-prices-cca7e5afd38fbcfc1ad72934e8e59bd9


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Euro crashes to record low against dollar as Italy’s Giorgia Meloni and far right win.

“The euro slid to a fresh 20-year low on Monday, falling below 96 cents against the US dollar ― the steepest decline in two decades ― after the rise of a far-right party in Italy’s election rattled investor confidence. The single currency, which came into physical circulation in 2002, slumped to $0.9550 against the greenback…”

https://www.thenationalnews.com/business/markets/2022/09/26/euro-slumps-to-all-time-low-against-dollar-as-italys-giorgia-meloni-leads-polls/


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Germany Secures Just One Tanker of Gas During Scholz’s Gulf Tour.

“German Chancellor Olaf Scholz secured just one shipment of liquefied natural gas from the United Arab Emirates, with a non-binding agreement for more, as Europe’s biggest economy struggles to replace Russian supplies.”

https://www.bloomberg.com/news/articles/2022-09-25/germany-nabs-uae-gas-deal-as-energy-squeeze-tightens


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In Moldova, thousands in new call for government’s resignation.

Several thousand people protested in Moldova’s capital on Sunday for the second straight weekend to demand the resignation of the country’s pro-Western government amid mounting anger over spiralling natural gas prices and inflation.”

https://www.reuters.com/world/europe/moldovas-capital-thousands-call-governments-resignation-2022-09-25/


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A Ponzi scheme by any other name: the bursting of China’s property bubble…

“Nearly a third of all property loans are now classed as bad debts – 29.1%, up from 24.3% at the end of last year… The market is experiencing a total collapse in confidence, analysts say… About 2m off-plan homes remain unfinished across China, according to a rough estimate by S&P. That figure will grow if sales continue to fall and developers continue to run out of money to complete projects.”

https://www.theguardian.com/business/2022/sep/25/china-property-bubble-evergrande-group


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In China, home buyers occupy their ‘rotting’, unfinished properties.

“Xu and about 20 other buyers living in Xiulan County Mansion… are part of a movement of home buyers around China who have moved into what they call “rotting” apartments, either to pressure developers and authorities to complete them or out of financial necessity, as numerous cash-strapped builders halt construction amid the country’s deep real estate slump.”

https://www.msn.com/en-gb/news/world/in-china-home-buyers-occupy-their-rotting-unfinished-properties/ar-AA12eDj8


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Weaker Demand for Chinese Goods Spells End of Shipping Boom.

“The cost of shipping goods from China has slumped to the lowest level in more than two years as the world economy stumbles, dimming prospects for container carriers that turned in record profits during the pandemic… China’s economic slowdown is also cutting into import demand…”

https://www.bloomberg.com/news/articles/2022-09-26/weaker-demand-for-goods-from-asia-marks-end-of-shipping-bonanza


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China growth to fall behind rest of Asia for first time since 1990… World Bank is latest financial institution to slash Chinese economic forecast…

“China had set a GDP target of about 5.5 per cent this year, which would have been a three-decade low. But the outlook has deteriorated markedly over the past six months.”

https://www.ft.com/content/ef425da7-0f94-484a-9f0c-40991be70ccc


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Hong Kong is reconnecting with a world economy heading for a deep recession and stagflation…

“The ugly reality is that we are emerging from over 30 months of acute and potentially permanent economic self-harm only to join a world economy poised to tumble into its deepest recession in four decades, with stagflation of maybe five years or more.”

https://www.scmp.com/comment/opinion/hong-kong/article/3193696/hong-kong-reconnecting-world-economy-heading-deep


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Crisis Level Risks Loom in Asia as Major Currencies Crack.

“The yuan and yen are both tumbling due to the growing disparity between an uber-hawkish Federal Reserve and dovish policy makers in China and Japan. While other Asian nations are digging deep into foreign-exchange reserves to mitigate the dollar’s damage, the yuan and yen’s slump is making things worse for everyone…”

https://uk.finance.yahoo.com/news/financial-crisis-redux-looms-asia-160000271.html


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Argentina has ceased to be a tire-manufacturing country as labor conflicts resulted in the closing of all three plants nationwide…

“Pirelli stopped production this weekend due to the lack of inputs because of union blockades dating back to over 100 days, joining Fate and Bridgestone. Unable to bring in nitrogen trucks Friday with such an essential input, the company Saturday closed down operations until further notice.”

https://en.mercopress.com/2022/09/26/all-tire-manufacturing-plants-in-argentina-close-down


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Protests in Colombia against President Petro’s tax reform.

“Thousands of protesters marched on Monday against economic and social reforms proposed by Colombian leftist President Gustavo Petro – which he says will fight inequality – just 50 days after he took office… Some marchers compared Petro’s governance so far to authoritarianism and said objections to his administration would mount.”

https://www.france24.com/en/americas/20220927-protests-in-colombia-against-president-petro-s-tax-reform


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Fuel shortages at Cape Town airport threaten tourism recovery.

“The shortage of jet fuel at Cape Town International Airport could disrupt the schedule of airlines and force them into refuelling detours, potentially increasing their costs at a time when the aviation and tourism industries are showing strong signs of recovery after Covid-19.”

https://www.businesslive.co.za/bd/national/2022-09-26-acsa-warns-of-fuel-supply-risk-at-cape-town-international-airport/


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Protests Over Water Shortages Shut Longest South African Highway.

“Part of South Africa’s longest highway, which runs from Cape Town to Zimbabwe, was shut on Monday by protesters who were demonstrating over water shortages… The situation remains tense and the public order police unit is on the scene, police spokeswoman Loraine Earle said by phone.”

https://www.bloomberg.com/news/articles/2022-09-26/protests-over-water-shortages-shut-longest-south-african-highway#xj4y7vzkg


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Catastrophic Grid Failure Causing Widespread Blackouts in Nigeria.

“Nigeria’s national electricity grid woes show no signs of abating with the grid collapsing again on Monday, leaving many parts of the country without power. Nigeria’s national power grid has collapsed at least four times this year, with the authorities blaming technical problems for the breakdowns.”

https://oilprice.com/Latest-Energy-News/World-News/Catastrophic-Grid-Failure-Causing-Widespread-Blackouts-In-Nigeria.html


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Sudan: Market Closures Spread Across the Country Amid Economic Insecurity.

“In protest against tax increases by state governments in Sudan, markets in El Obeid, capital of North Kordofan, El Gedaref, capital of El Gedaref state, and Ed Damazin, capital of Blue Nile state, will close between Sunday and Thursday, as the country’s economy continues to stagnate.”

https://allafrica.com/stories/202209260404.html


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Protests in Tunisia’s capital amid inflation, food shortages.

“Some gathered burned tyres, while others chanted, “Where is Kais Saied?”, in reference to Tunisia’s president, who is under pressure as the North African country faces a financial crisis, with inflation running at nearly nine percent and shortages of some food items in stores across the country.”

https://www.aljazeera.com/news/2022/9/26/protests-in-tunisias-capital-amid-inflation-food-shortages


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Renewed militia clashes rock western Libya; 5 killed.

“A new round of infighting between rogue militias in western Libya has killed at least five people, including a 10-year-old girl, health authorities said Monday, the latest bout of violence to rock the North African nation mired in decadelong chaos.”

https://www.arabnews.com/node/2169536/middle-east


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Poverty and Inflation: Egypt’s Economy Hit by Global Turmoil…

“For the nearly third of Egyptians living in poverty, and the millions more in poor conditions, the country’s economic woes mean life is much harder than off-season shopping — they’re finding it harder to put food on the table. A decade after deadly protests and political upheaval rocked the Middle East’s most populous nation, the economy is still staggering and has taken new hits.”

https://www.voanews.com/a/hold-for-pm–poverty-and-inflation-egypt-s-economy-hit-by-global-turmoil/6762231.html


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Daily blackouts put Lebanon’s ancient artefacts at risk…

“For the museum’s stone objects, climate control is not an issue. But for items such as frescoes, mummies and textile, metal or organic artefacts like Bronze Age weaponry and Roman leather armour, temperature and humidity control – and therefore power – is essential.”

https://www.aljazeera.com/news/2022/9/25/lebanon-blackouts-put-beiruts-ancient-artefacts-at-risk


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Tense calm in Baghdad as new protests planned for Oct 1…

“Demonstrators, mostly of the younger generations, had camped out in the capital’s Tahrir Square and other public squares from October 2019 until early 2020, decrying endemic corruption, poor services and unemployment by the former Iraqi government led by Adil Abdul-Mahdi.”

https://english.alaraby.co.uk/news/tense-calm-baghdad-ahead-renewed-protests-1-oct


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Iran protests: at least 450 arrested in northern province…

“Protests sparked by the death in police custody of 22-year-old Mahsa Amini have spread across the country. They have been met with internet shutdowns and violent repression. The official death toll in the unrest is 41, and human rights groups say the true number may be higher.”

https://www.theguardian.com/global-development/2022/sep/26/iran-protests-mahsa-amini-at-least-450-arrested-in-northern-province


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Photos: Sri Lankan police fire tear gas to disperse protesters.

“The Sri Lankan police violently dispersed hundreds of demonstrators a day after severely curtailing protest rights in response to months of unrest sparked by the island nation’s sharp economic downturn. President Ranil Wickremesinghe has taken a tough line against activists who forced his predecessor to flee the country…”

https://www.aljazeera.com/gallery/2022/9/25/photos-sri-lankan-police-fire-tear-gas-to-disperse-protesters


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

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