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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What happens when $2 trillion is sucked out of the global economy? It may not be pretty.

“Central banks have been credited with averting a global depression twice over the past 15 years: Once after the 2008 financial crisis, and again at the height of the coronavirus pandemic.

“But the tactics they deployed to restore confidence and keep money flowing from banks to the economy amounted to a high-stakes experiment — one that may be impossible to unwind without destabilizing the financial system.” [Photo is actually of the Corryvreckan Whirlpool by the island of Jura.]

https://edition.cnn.com/2023/05/19/economy/quantitative-tightening-global-impact/index.htm


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Worries may be growing about a global financial crisis, but not at the Bank of England.

“Businesses, in particular, are becoming increasingly nervous. Based on responses to the latest Global Risk Survey from Oxford Economics, they think banking system strains and tightened credit supply now pose the greatest threats to the global economy. Most strikingly, a full-blown financial crisis is no longer viewed as a remote possibility.

https://www.thetimes.co.uk/article/worries-may-be-growing-about-a-global-financial-crisis-but-not-at-the-bank-of-england-9ngtqcshh


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UK and US regulators were told of a state-led drive to “rig” interest rates in the 2008 financial crisis, but covered it up, evidence indicates…

“At the height of the 2008 financial crisis, when bank lending had almost ground to a halt, central banks around the world urged calm. But behind the scenes, the investigation reveals evidence that they were pulling levers to restore calm artificially – measures which would later be ruled to be against the law in the UK.”

https://www.bbc.co.uk/news/business-65635243


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Bond Market Caught Between Fears of US Debt Default, Rate Hikes… A Fed pause in June, once seen as certain, no longer assured…

“Bond traders are losing faith that the Federal Reserve is done tightening monetary policy and will ride to the rescue with rate cuts this year.”

https://www.bloomberg.com/news/articles/2023-05-20/bond-market-caught-between-fears-of-us-debt-default-rate-hikes


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Even Flirting With U.S. Default Takes Economic Toll…

“Even if a deal is struck before the last minute, the long uncertainty could drive up borrowing costs and further destabilize already shaky financial markets. It could lead to a pullback in investment and hiring by businesses when the U.S. economy is already facing elevated risks of a recession, and hamstring the financing of public works projects.”

https://www.nytimes.com/2023/05/20/business/economy/debt-limit-default-economy.html


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[US] Bankruptcies are skyrocketing — and that’s only half the story…

Why so many bankruptcies? The answer is one word: capital. Regardless of an economy’s growth, capital is needed to run businesses. Working capital. Equipment and property financing. Cash flow to buy inventory and pay salaries. And unfortunately that capital has become much, much more expensive, and much less available.”

https://thehill.com/opinion/finance/4011001-bankruptcies-are-skyrocketing-and-thats-only-half-the-story/


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Hedge Funds’ Ultra-Bearish Oil Bets Signal US Recession Angst.

“Money managers that trade derivatives linked to oil and fuel prices are about as bearish as they’ve been in more than a decade, suggesting they’re braced for a recession that could cause contracts from crude to jet fuel to take another tumble.”

https://finance.yahoo.com/news/hedge-funds-ultra-bearish-oil-130000479.html


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Oil drilling is collapsing in the US as producers rein in output, mirroring a recent plunge in rigs searching for natural gas.

“Rigs targeting crude declined by 11 to 575 this week, according to data released Friday by Baker Hughes Co. It’s the biggest weekly drop since September 2021. The pullback was led by the Permian Basin of West Texas and New Mexico…”

https://www.bloomberg.com/news/articles/2023-05-19/oil-drilling-plunges-the-most-in-two-years-as-shale-producers-retreat


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G7 alarms climate activists over support for gas investments…

“The April meeting of G7 climate ministers eventually agreed, despite tussles between Japan and European nations, that gas investments “can be appropriate to help address potential market shortfalls” following Russia’s invasion of Ukraine and the disruption it has caused in global energy markets.”

https://www.reuters.com/business/energy/g7-brings-gas-investments-back-temporary-solution-dismay-climate-activists-2023-05-20/


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Norway faces backlash from campaigners for ‘reckless’ pursuit of Arctic oil and gas.

“Norway last year overtook Russia as Europe’s biggest natural gas supplier and says it is now seeking to maintain Europe’s energy security by exploring the Barents Sea for further resources.”

https://www.cnbc.com/2023/05/22/norway-urges-energy-giants-to-ramp-up-search-for-arctic-oil-and-gas.html


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Rome climate protesters turn Trevi fountain water black…

“The protesters from the Ultima Generazione (Last Generation) group held up banners saying “We won’t pay for fossil [fuels]” and shouted “Our country is dying.” Uniformed police waded into the water to take away the activists, with many tourists filming the stunt and a few of the onlookers shouting insults at the protesters, video footage showed.”

https://www.theguardian.com/world/2023/may/21/rome-climate-protesters-turn-trevi-fountain-water-black


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Thousands mass for pro-EU rally in Moldovan capital, amid tensions with Russia.

“A huge pro-EU rally has taken place in Moldova’s capital Chisinau, organised by the country’s President Maia Sandu. An estimated 75,000 people turned out to support Moldova’s push to join the European Union.”

https://www.bbc.co.uk/news/world-europe-65667634


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Europe’s politicians impose price caps to address soaring food costs.

Europe’s retailers and governments are locked in their fiercest tussle over food costs for 50 years, with policymakers resorting to price controls to tackle the worst cost of living crisis for a generation. Despite lower energy prices easing overall price pressures, growth in the cost of food has continued to soar…”

https://www.ft.com/content/133ca49d-b25a-47ee-9bfa-d8c2f62a5f3


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Cost of fish and chips soars to £9 as Rishi Sunak urged to help takeaways with bills [UK]…

“Chancellor Jeremy Hunt slashed energy bill support to businesses by 80% in the Spring Budget from £18bn to £5bn, forcing many small businesses including takeaways to pass on costs to consumers. Lib Dem leader Sir Ed Davey called on the Rishi Sunak to reverse the cut.”

https://www.mirror.co.uk/news/politics/cost-fish-chips-soars-9-30031959


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One million in UK switch off broadband due to cost of living crisis, charity warns…

“The charity said its survey showed broadband – an increasingly essential service with many job applications, utility bills and local council services moving online – was becoming out of reach for greater numbers of households.”

https://news.sky.com/story/one-million-in-uk-switch-off-broadband-due-to-cost-of-living-crisis-charity-warns-12883364


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Starvation, skipping meals and living in a freezing car: The brutal reality of life on the poverty line in 2023 Australia – as the cost of living crisis spirals out of control…

“Families have been sharing their gruelling stories of surviving on the poverty line, with some existing on just $6-a-day for essential living costs including housing, food and bills.”

https://www.dailymail.co.uk/news/article-12092611/Australians-struggling-afford-basic-needs-cost-living-crisis-soars-Salvation-Army-report.html


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Australia’s big supermarkets increased profit margins through pandemic and cost-of-living crisis, analysis reveals…

“Guardian Australia analysis of Coles and Woolworths financial accounts over a five-year period show the dominant supermarkets were able to use the pandemic to not just sell more goods, but also increase the amount they profited from sales.”

https://www.theguardian.com/business/2023/may/22/australias-big-supermarkets-increased-profit-margins-through-pandemic-and-cost-of-living-crisis-analysis-reveals


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Surge in strikes at Chinese factories after Covid rules end…

“For most of the strikes, the root cause is money. Although China’s economy is gradually recovering from the battering it took during three years of strict zero-Covid measures, factories are still struggling. And the worsening political relations between the US and China are starting to make themselves felt in the economy.

https://www.theguardian.com/world/2023/may/21/surge-in-strikes-at-chinese-factories-after-covid-rules-end


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China Bars Purchases of Micron Chips in Escalation of US Clash.

“China issued its latest salvo in an escalating semiconductor war with the US, announcing that Micron Technology Inc. products have failed to pass a cybersecurity review in the country. In a statement Sunday, Beijing warned operators of key infrastructure against buying the company’s goods…”

https://www.bloomberg.com/news/articles/2023-05-21/china-says-micron-products-failed-in-its-cybersecurity-review


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China’s $23 Trillion Local Debt Mess Is About to Get Worse.

“In 2021, a remote coal town in northeastern China was forced to undergo an unprecedented financial restructuring. Its struggles since are an ominous sign for President Xi Jinping as other heavily indebted municipalities look set to follow suit.”

https://www.bloomberg.com/news/features/2023-05-21/china-s-23-trillion-local-debt-crisis-threatens-xi-s-economy


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Crippling heat waves deepen Asia’s reliance on Russian energy.

“The extreme heat that’s been scorching Asia in recent weeks has produced one clear beneficiary — Russia. As countries across the region scramble to make sure they have enough coal, gas and fuel oil to keep the lights on, Russian energy being shunned by the West is looking increasingly attractive.”

https://www.japantimes.co.jp/news/2023/05/21/asia-pacific/russian-energy-reliance-asia-heat/


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“F**K”: Imran Khan let’s it out as power cuts during live address, netizens in splits…

“During his live address, Imran Khan lost his temper as he witnessed a power cut and there was a complete blackout. Once there was a blackout, he was heard abusing in the video that has gone viral over the internet.”

https://timesofindia.indiatimes.com/videos/news/fk-imran-khan-lets-it-out-as-power-cuts-during-live-address-netizens-in-splits/videoshow/100401490.cms


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Israelis Take to the Streets for 20th Week of Protests Against Netanyahu’s Judicial Coup.

“Protest organizers in charge of the main demonstrations in Tel Aviv are focusing this Saturday’s protest on what they say is the ‘raiding of the public coffers’ by Israel’s ultra-Orthodox coalition parties, just as the government prepares to pass the state budget in the coming days.”

https://www.haaretz.com/israel-news/2023-05-20/ty-article/.premium/israelis-take-to-the-streets-for-20th-week-of-protests-against-netanyahus-judicial-coup/00000188-394c-d805-a7c9-f9cda3060000


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Yemeni riyal falls to 1,320 to dollar as president calls for financial aid…

“The Yemeni government’s efforts to stem the devaluation of the riyal, which included shutting down unlicensed exchange firms, providing oil and goods importers with dollars, suspending the internal transfer system between exchange shops known as hawala, and restricting the smuggling of foreign currencies out of the country, have largely failed.”

https://www.arabnews.com/node/2307116/middle-east


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Sudan’s Crisis Is Pushing Egypt to the Brink…

“In the past month, it is estimated that over 90,000 Sudanese refugees have journeyed into Egypt; the real numbers are likely much higher, as thousands are waiting at the border—without shelter, safe drinking water, and reliable food—to cross over. Yet Egypt itself is not the ideal safe haven: it is currently grappling with an economic crisis, severe food shortages, and a devaluation of its currency, the Egyptian pound.”

https://nationalinterest.org/feature/sudan%E2%80%99s-crisis-pushing-egypt-brink-206484


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Heavy fighting in Khartoum hours after Sudan rivals agree to upcoming ceasefire…

“Multiple truces have been violated since fighting broke out five weeks ago… Khartoum residents — who for weeks have been sheltering from brutal urban warfare amid desperately low supplies of food and vital resources — were sceptical that this time would be any different.”

https://www.france24.com/en/africa/20230521-sudan-s-army-paramilitary-rsf-sign-seven-day-ceasefire-amid-intense-fighting


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Sudan war hits crucial gum arabic business…

The golden blobs of resin tapped from thorny acacia trees are an emulsifying agent used in everything from soft drinks to chewing gum and pharmaceuticals. Sudan is the world’s largest producer of the raw gum which is a major source of foreign currency for the northeast African nation.”

https://www.france24.com/en/live-news/20230522-sudan-war-hits-crucial-gum-arabic-business


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

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