Connect with us

Business

Brace, brace, brace: commodity prices surge

Published

on

It was all meant to fall into place: The world gets vaccinated, and the recovery from the pandemic-doom begins. But soaring energy prices are about to put the crunch on China, and then the rest of the world.

The latest bout of commodity-price surge has taken markets by surprise just as major central banks were planning to find a path out of their stimulus measures.

But the price of commodities may put an end to that sort of wishful thinking on the part of federal treasurers and the Fed.

INNER MONGOLIA, CHINA

OIL, GAS RISE

Oil’s climbed to more than $80 a barrel for the first time in three years, natural gas for October delivery traded at the costliest in seven years and the Bloomberg Commodity Spot Index rose to the highest level in a decade. 

The rising cost of power, as well as intermittent power cuts to Chinese factories as Beijing tries to force reduced emissions, could now lead to surging prices for Chinese goods.

Sharp cuts in production across a range of energy-intensive industries in China are now expected to drag growth lower this year, with economists from Goldman Sachs Group Inc. to Morgan Stanley cutting forecasts.

Trader on the New York Stock Exchange
Trader on the New York Stock Exchange

WALL STREET BRACES FOR IMPACT

Investors have been caught by surprise, having spend much of the year planning for a sudden recovery. Wall Street stocks ended sharply lower on Tuesday in a broad sell-off driven by rising U.S. Treasury yields.

It was the S&P 500 index’s biggest one-day percentage drop since May, and the Nasdaq’s largest since March.

The S&P 500 and the Nasdaq Composite index were on track for their largest monthly declines since September 2020.

“The big picture is the sudden surge in the past week of yields, which has led to a ‘sell first, ask questions later’ mentality.”

Ryan Detrick, senior market strategist at LPL Financial

In the US, rising costs for households and companies are hitting confidence while pushing inflation faster than economists had expected only a few months ago. 

In the U.K., consumer confidence fell in September at its sharpest pace since almost a year ago as Britons brace for a looming income squeeze. 

All three major U.S. stock indexes slid nearly 2%, with tech and tech-adjacent stocks weighing heaviest as investors lost their risk appetite.

“(But) there are multiple factors weighing on sentiment today,” Detrick added. “The back-and-forth in Washington with the debt ceiling and the spending bill and potential higher taxes have weighed on overall investor psyche and has led to a pretty good sized sell-off.”

THE SILVER LINING

Thankfully for advanced economies, they have been able to recover from the “COVID recession” better than anticipated a year ago. 

Many officials around the world are still hopeful the current spike in prices will fade without the need for action. 

European Central Bank President Christine Lagarde believes the key challenge for policy makers is that “we do not overreact to transitory supply shocks that have no bearing on the medium term.”

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

Business

WhatsApp ramps up privacy features

Published

on

WhatsApp ramps up privacy features to prevent subscriber loss

The world’s two billion plus WhatsApp users will soon have greater privacy controls with new platform changes on the way.

Meta boss, Mark Zuckerberg, announced the new WhatsApp updates in a Facebook post earlier this week.  

Users will be able to make a stealthy exit from group conversations without the rest of the participants being notified.

Other changes include allowing users the ability to check messages without others knowing and controlling who sees when they are online.

These functions have been flagged as being rolled out to WhatsApp users over the next month.  

Even more significant to user privacy is a function that is still under development.

Here, WhatsApp users can allow their messages to be viewed only once with an added screenshot blocking feature.

This will prevent other users saving their communication onto their phones for future reference.  

The changes have been announced after Meta was scrutinised last year for their data sharing practices after an update of its Terms of Service.

META CEO, Mark Zuckerberg as WhatsApp ramps up privacy features

Users were concerned over suggestions WhatsApp user data would be shared and utilised by parent company Meta.

WhatsApp has always boasted about the benefits of its end-to-end encryption preventing.

The news that WhatsApp planned to share user data more widely with Meta shook users’ faith in the platform.  

As the third most popular social media platform, it seems Meta is keen to retain this market share by increasing its privacy features.

Some would say this is both to allay security fears and to prevent them from moving to other popular messaging apps such as Signal.  

Continue Reading

Business

Why airline executives are being forced to face customers

Published

on

As frustrated customers take their anger out on the remaining airport checkin staff, airline executives are being forced onto the front line to face customers.

The return of summer in Europe has been overshadowed by travel chaos, leaving passengers frustrated and often out of pocket.

Thousands of people have been left to battle airport queues that last hours, long delays and thousands of cancellations.

Airports and airlines face staff shortages forcing them to reduce the number of scheduled flights – often at short notice. 

It’s a global problem, with airports and airlines rushing to hire back the thousands of positions they axed at the start of covid.

But how do you do it, and how long until things return to normal?

Continue Reading

Business

Facebook hands teen’s data to police for abortion charge

Published

on

New reports reveal that Facebook has handed over data to police to help criminally punish a teenager for seeking to get an abortion

The tech giant turned Celeste Burgess’ Facebook message’s into the authorities, where she is being charged for “removing and abandoning a dead human body.”

The 17-year-old lives in Nebraska where abortion isn’t illegal, but the abortion happened via medication at 23 weeks.

Nebraska has a 20 week pregnancy cut off date, and the medication also warns against medical abortion past this time.

The teen’s mother is also facing 5 charges.

This comes amid widespread controversy after the historic Roe v Wade ruling was overturned in the United States.

Continue Reading

Trending Now

Copyright © 2022 The Ticker Company PTY LTD