NB: Tomorrow’s climate thread will be a bit later in the day than usual, as I must whisk the car off to the mechanic first thing to get its squeaky brakes attended to (I hope you are enjoying these riveting vignettes of my domestic life btw; it’s a thrill a minute!).
“As the reality of recession sinks in, prepare for markets to crash.
“Until now, it seemed there were two parallel economic universes – a “real” one where people suffered from soaring inflation, food and supply shortages or even war, and a “virtual” one where financial markets envisaged a rapid return to rosy normality. Now, the virtual one is about to explode.
“We are likely to be entering what could be called stage two of the “great unravelling”, when a bear market in stocks and a cooling in real estate values turn into a major collapse in asset prices as the reality of economic recession starts to sink in.”
https://www.scmp.com/comment/opinion/article/3202589/reality-recession-sinks-prepare-markets-crash
“Container market collapse sees first ships heading for scrap…
““The market collapse is clearly continuing to intensify” Sea-Intelligence noted in its most recent weekly report, published yesterday. “New demand data shows a market in a full state of collapse, driven by a strong desire amongst importers to reduce their inventory exposure,” analysts at the Copenhagen outfit wrote.”
https://splash247.com/container-market-collapse-sees-first-ships-heading-for-scrap/
“British Factories Brace for Two Straight Years of Recession…
“Deteriorating economic conditions both in the UK and abroad are imposing a “vice-like grip” on factories, industry body Make UK said Monday. Its outlook, based on a survey conducted with accountancy firm BDO LLP, showed a 4.4% contraction this year and 3.2% drop next year.”
“Stress over cost of living crisis harming workers’ performance, survey finds.
“Workers in the UK are becoming so anxious about the cost of living crisis that it is affecting their performance at work, with two-thirds of managers reporting issues such as rising absenteeism and lack of engagement among stressed-out staff.”
“Power prices have surged to a record high [UK] as the cold snap and a lack of wind prompts a scramble for electricity among suppliers.
“Day ahead UK power prices jumped to an all-time high of £675 a megawatt hour on Epex Spot Exchange on Sunday as snow and sub-zero temperatures swept across Britain. The cost of power at the peak hours of 5pm-6pm soared to a record £2,586 a megawatt-hour.”
https://www.telegraph.co.uk/business/2022/12/11/power-prices-surge-record-levels-cold-snap-hits/
“Get the watermelons in and start drinking beer if water supplies fail in national power outage, crisis planners advise.
“Brits should eat watermelons if water supplies fail during a national power outage, crisis planners have said. The advice was given in a document leaked to The Sun about Project Yarrow, the Government’s analysis of how we might react to a water shortage or power cut.”
“Swedish Premier Warns of Power Crisis as Key Reactor Shuts.
“Sweden’s power crisis is getting worse, with an outage at its biggest nuclear reactor exposing the nation to the real risk of disconnections, Swedish Prime Minister Ulf Kristersson said… “The situation is relatively acute, we don’t want to create panic but it is a serious problem and there are significant risks,” Kristersson told journalists Friday.”
“‘Don’t take the lift’: French alarm rises over risk of winter power cuts…
““Right now [the goverment’s messaging is] just raising a lot of questions and causing more panic than the opposite,” said Florence Compte, the headmistress of a primary school in the southern Var region, after hearing classrooms in areas hit by short, targeted cuts would have to shut for the morning, as they would be unheated and unlit.”
https://www.ft.com/content/c5e461f1-fee7-4112-984b-d5e4bf42dc44
“Chaos erupts in Paris as French and Moroccan fans hold World Cup celebrations – video…
“Footage showed people smashing shop fronts and fights with police. Some fires could also be seen on Avenue de Friedland close to the Champs-Élysées. Celebrations continued despite tear gas clouds frequently floating through traffic and euphoric crowds.”
“Eurozone central bank losses risk bailouts and more political pressure…
“Central banks across the euro area will have to pay about €70bn of interest on the deposits of commercial banks next year… The scale of the payout on deposits will drag many eurozone central banks into the red.”
https://www.ft.com/content/24882347-4397-4890-8bd6-bbb8d5dae8cb
“Countries across Europe are reporting shortages of antibiotics as demand for the medicines rises and manufacturers grapple with supply-chain snags.
“Amoxicillin, cephalosporins and other widely used antibiotics are in short supply, data from various countries show, raising concerns among doctors and officials about the availability of drugs that are relied on to treat conditions ranging from ear infections to pneumonia.”
https://www.wsj.com/articles/europe-is-hit-by-shortages-of-antibiotics-11670639357
“Serbian President Aleksandar Vučić has met his national security council as tensions rise in Kosovo between the authorities there and ethnic Serbs.
“On Saturday a stun grenade was thrown at EU police in north Kosovo, where Serbs form a majority, and local police exchanged fire with unknown groups… Serbia refuses to recognise Kosovo as an independent state.”
https://www.bbc.co.uk/news/world-europe-63936840
“Tokyo’s Broken Bond Market Needs More Than BOJ Tweaks to Heal…
““The bond market is very vulnerable now,” said Nobuyasu Atago, chief economist at Ichiyoshi Securities Co. “The BOJ’s large-scale bond buying is hurting market functioning and the risk of a surge in yields is rising. The chance of a policy change to address the issues will only grow as time elapses.””
“How a $144 Million Property Default Started Korea’s Credit Crunch.
“Gobal central bankers are in a race against the clock to to tame runaway inflation. But push too far, too fast, and markets key to the smooth functioning of the financial system are liable to buckle… That’s just what happened recently in South Korea…”
https://finance.yahoo.com/news/144-million-property-default-started-233000884.html
“N. Korea tightens discipline as economic crisis deepens…
“In an attempt to boost morale among North Koreans amid the growing economic crisis, Pyongyang on Sunday announced that a brigade of young North Koreans had climbed and toured Paektusan — a mountain on the North Korea-China border that is considered sacred.”
http://www.koreaherald.com/view.php?ud=20221211000101
“China, the world’s largest buyer of crude, has opened the door to trading crude oil and natural gas in its local currency, rather than the US dollar, although it’s not clear a change would happen anytime soon…
“China’s president Xi Jinping mentioned on his trip to Riyadh last week that the Shanghai Petroleum and Natural Gas Exchange would be “fully utilized in RMB settlement in oil and gas trade.””
“Iranian currency falls to record low against dollar amid anti-government protests.
“Iran’s currency fell to a record low against the dollar on Sunday, with nationwide anti-government protests now in their third month. A breakdown in negotiations to restore Tehran’s nuclear deal has also hurt the value of the rial.”
https://www.arabnews.com/node/2214611/middle-east
“Pakistan-Afghanistan Border Clashes Kill 7, Injure 31…
“Sunday’s clashes erupted when Pakistani troops were trying to repair a portion of the border fence on their side, but Taliban forces objected to the effort and subsequent attempts to find a negotiated settlement to the standoff failed, local officials and residents reported.”
https://www.voanews.com/a/pakistan-afghanistan-border-clashes-kill-7-injure-31-/6871601.html
“Power cuts in -30C spark anger in Kazakhstan.
“The plight of a city in Kazakhstan left without heating for over a week in temperatures that dropped to minus 30 degrees Celsius (minus 22 degrees Fahrenheit) has sparked anger and highlighted the deplorable state of the country’s Soviet-era infrastructure.”
https://www.france24.com/en/live-news/20221210-power-cuts-in-30c-spark-anger-in-kazakhstan
“Bangladesh on razor’s edge: Why India must wake up to the looming economic crisis and political instability to its east.
“For the first time since 2009, Sheikh Hasina is on the back foot and a Sri Lanka-level macro-economic breakdown is a possibility. There is a dire need for calibrated behind-the-scenes intervention by regional powers, especially India.”
“State of emergency imposed in Peru unrest areas after 2 die in protests…
“Protests calling for an early general election and for Boluarte’s resignation erupted around the country after she was sworn in last Wednesday. She had been deputy to Pedro Castillo, who earlier that day was removed from office after he announced he would dissolve Congress and install an emergency government ahead of an impeachment vote.”
“Kidnappings, barricades, missiles and tyre fires: this is my life in Haiti…
“Protests in Haiti mean barricaded streets, burning tyres at every corner, people pelting your car with rocks or even dragging you out and torching your vehicle. Port-au-Prince is full to the brim with frustrated young people out of work.”
“Tunisians protest against Saied ahead of parliamentary elections…
“Many Tunisians are far more focused on a growing economic crisis and threats to public finances that have caused salary delays and the risk of shortages of key subsidised goods.”
“How private creditors’ financing compounds Nigeria’s debt crisis…
“It has been identified that because government is no longer credit worthy to take concessional loans with cheaper rates from multilateral and bilateral groups, governments at state and federal levels are now relying on commercial loans with much higher interest rates.”
“‘Everything increasing except wages’: Inflation batters Ethiopia…
“”Groceries, food, rent, all prices have gone up,” said Zerihun, a 30-year-old father of two working at the sprawling Merkato market in the capital Addis Ababa. “Because of the cost of living, life is very difficult … life has become expensive,” said his colleague Sintayeh Tadelle…”
“Crisis as suburbs go for 7 days without water.
“Bulawayo [Zimbabwe] has been hit by a serious water crisis with most suburbs going for more than a week without running water amid fears of a disease outbreak… due to water supply interruptions emanating from persistent power outages that have seen council failing to pump enough water from its supply dams into reservoirs.”
https://www.chronicle.co.zw/crisis-as-suburbs-go-for-7-days-without-water/
You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
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