| | African Climate Foundation: There’s Risk in Meeting European Demand | | Africa could face long-term consequences if it meets Western demand for the continent’s natural gas, says the climate change think tank African Climate Foundation (ACF) in a new report. With EU sanctions on Russian gas, Europe is increasingly turning to Africa as an alternative, and many African governments are fast-tracking projects to address European needs. | | African governments may expose their countries to severe long-term risks. - The African Climate Foundation  |
| |
| Yet African governments may expose their countries to severe long-term risks by doing so, says the ACF’s new report, which notes that the continent has an opportunity to instead pursue a transition toward a low-carbon economy. This ultimately would lower the costs of potentially crucial innovations, such as electrolyzers used to produce hydrogen, power system flexibility batteries and solar and wind, the report says. African governments may be disregarding these long-term benefits to pursue short-term gains from high energy prices. In September, 16 West African countries and Morocco signed a “Memorandum of Understanding” on the construction of a Nigeria-Morocco pipeline to supply Europe with natural gas. | | ...there is absolutely no question that the onus to rapidly mitigate greenhouse emissions must be on the developed countries... - ACF senior research adviser Ellen Davies | | “For us, there is absolutely no question that the onus to rapidly mitigate greenhouse emissions must be on the developed countries given their historic and continued contribution to climate change. The hypocrisy of countries and regions in the global north who continue to emit the most yet call for rapid decarbonization in other parts of the world is not lost on us,” said ACF senior research adviser Ellen Davies during ACF meetings. Davies also noted that, even as Europe looks to Africa to meet current energy needs, it is at the same time putting into place measures that will “end up penalizing those countries that come to its rescue” by increasing their emissions. Her remarks come ahead of the 2022 United Nations Climate Change Conference (COP27), to be held in Egypt starting on Sunday. Africa’s annual natural gas production is expected to grow to 292 billion cubic meters by 2025, a roughly 16% increase relative to 2019, according to the International Energy Agency. |
|
|
| | | | |  | | 1 | Blackstone to Acquire $14 Billion Stake in Climate Technologies Unit | | American manufacturer Emerson Electric Co. will sell a $14 billion majority stake of its climate-technologies segment to private investment company Blackstone Inc., according to The Wall Street Journal. The Inflation Reduction Act included tax breaks and rebates intended to incentivize consumers and businesses to make climate-friendly updates to their heating and cooling systems; Blackstone reportedly sees an opportunity for Emerson to shift toward more energy-efficient technologies as consumers make such upgrades. The sale would add a 55% stake in Emerson’s climate-technology unit to Blackstone’s $951 billion of assets that currently span real estate, private equity and hedge funds. (Source: The Wall Street Journal) | | Blackstone reportedly sees an opportunity for Emerson to shift toward more energy-efficient technologies. |
| | 2 | Tech Stocks Feel the Heat | | Among top tech stocks, only Apple has managed to outperform the Nasdaq Composite Index so far this year. An index of American stocks, the Nasdaq Composite is down 29% in 2022, and among the companies known as FAANG — an acronym for five elite American tech firms, Facebook (owned by Meta), Amazon, Apple, Netflix, and Google (owned by Alphabet Inc.) — all but Apple are faring worse than the index overall. With interest rates on the rise, markets have turned bearish. Prized tech stocks have lost ground and some analysts note that certain companies may have been overvalued. “There was rampant speculation in the [tech] sector,” said Rupal Bhansali, portfolio manager and chief investment officer at the firm Ariel Investments. (Sources: The Wall Street Journal, Bloomberg) |
|
|
| | | | |  | | 1 | Russian Move Causes New Turmoil in Global Food Prices | | Russia’s sudden withdrawal from a pact allowing the shipment of Ukraine grain exports has thrown global food prices into renewed uncertainty. A new round of food-price inflation is now likely, accompanied by the possibility of new or exacerbated shortages in food-insecure regions. In July, the Turkish government and the U.N. brokered a deal between Russia and Ukraine, in which grain from the latter’s ports was permitted to ship to vulnerable countries. However, as EU sanctions targeting Russian crude oil will soon take effect, the Kremlin on Saturday withdrew from the July deal. A statement from the Ukrainian government on Sunday said that 218 vessels had effectively been blocked owing to Russia’s withdrawal, and Ukraine accused Russia of stoking famine in Africa and Asia, which rely on Ukrainian grain. Chicago wheat futures — a leading global grain price standard — rose 6% following this news. (Sources: Reuters, Bloomberg, Financial Times) | | A new round of food-price inflation is now likely, accompanied by the possibility of new or exacerbated shortages in food-insecure regions. |
| | 2 | Eurozone Inflation Hits Record | | In October, Euro-area inflation was up 0.8 percentage points to an annualized rate of 10.7%, a new record from a previous high of 9.9% in September, as the EU continues to grapple with challenges in energy and food supplies. On Monday, the statistics agency, Eurostat, reported that energy recorded the highest price increases, followed by food and non-energy industrial goods and services. “Recession risks are spreading,” said Spanish central bank Governor Pablo Hernandez De Cos on Monday. (Source: Bloomberg) |
|
|
| | | | | | |  | | 1 | Japan’s Government Spent Billions to Shore Up Yen | | Japan spent the equivalent of about $42 billion in October to counter speculation against the yen and therefore prop up the value of the currency, which has plummeted relative to the U.S. dollar. Japan’s rising costs associated with importing coal, liquefied natural gas, and crude oil have caused the yen this year to lose more than 22% of its value relative to the dollar. Analysts expect the yen will continue to fall, as interest rates in the U.S. are rising due to hikes at the Federal Reserve, while the Bank of Japan has resisted making such moves. (Source: Bloomberg, Reuters) |
| | 2 | Hong Kong’s Economy Contracts by 4.5% in Third Quarter | | China’s Hong Kong territory saw its economy contract in the third quarter at the sharpest rate since 2020, Bloomberg reports. China’s “zero-COVID” policy as well as rising interest rates, among other factors, have contributed to a sharper-than-expected economic slowdown in the territory. Prior to late September, a hotel quarantine rule was in effect in Hong Kong; that requirement has now been lifted, a step that may improve the city’s economic outlook. (Sources: Bloomberg, Hong Kong Government) |
|
|
| | |  | |
What brings you hope even when global news is grim? | | |
|
|
| | |
|
|
A Modern Media Company 
