News roundup for Fri, Apr 15, 2022

Economy and Supply Chain

Inflation reached a 40-year high. The S&P 500 dropped by 11% by the end of 2022 due to an inflation shock. Historically, many recessions have been preceded by sharp inflation spikes, such as in the late 1960s, early 1970s, and during the 2008 financial crisis.

OPEC has lowered its global oil demand forecast by 480,000 barrels per day, citing the Ukraine invasion, rising crude prices, and the resurgence of the Omicron variant in China. These factors have disrupted global energy markets and added pressure on already struggling economies.

President Biden is allowing more ethanol into gasoline this summer as part of efforts to reduce fuel costs. Here’s a look at how gas prices have changed since 1978:

The European Parliament has called for a complete and immediate ban on Russian oil, coal, nuclear fuel, and gas. Experts warn that Russia’s war in Ukraine could prevent Europe from returning to economic normalcy anytime soon. The continent is now facing energy insecurity and rising costs across sectors.

UK inflation hit 6.2% and is expected to rise further. While public sector wages increased, the pace of price hikes outstripped wage growth, leading to a 3% drop in real income—the largest decline in two decades.

Sri Lanka is on the brink of bankruptcy, with severe fuel and food shortages forcing the government to seek aid from India and China. The country is struggling to stabilize its economy amid a deepening crisis.

Fertilizer prices have surged by 43%, prompting farmers to explore alternatives like liquid animal manure. In some regions, waste products are being considered as substitutes to ease the fertilizer shortage.

Manufacturers, retailers, and seafood companies are increasingly relying on air cargo to speed up deliveries. The surge in demand has led airlines, shipping firms, and aircraft manufacturers to invest heavily in new or converted cargo planes.

Truckers are blocking the U.S.-Mexico border over inspections ordered by the Texas governor. Protesters warn that these actions could cause supply chain disruptions, including the delivery of perishable goods in non-refrigerated trucks.

Climate Change, Ecology, and Extreme Weather

The 2022 Atlantic hurricane season is expected to be more active than usual, and emergency experts are urging people to start preparing now. We’ve put together a guide on how to prepare for and survive hurricanes.

Extremely active hurricane seasons are now twice as likely as they were in the 1980s. Although the number of hurricanes may not increase significantly, the intensity and destructiveness of storms have risen—storms now bring 11% more rainfall over three-hour periods.

Record snow, tornadoes, and wildfires have struck the U.S. recently. Meanwhile, the Indian Ocean has seen a series of deadly tropical storms, with millions facing repeated threats within just six weeks. Durban, South Africa, was hit by three cyclones and two tropical storms at the start of the year, resulting in nearly 260 deaths.

Climate scientists predict that 380 million people will face water stress by 2050, with the highest impacts expected in the Middle East, North Africa, and parts of Asia. Water scarcity is becoming a growing global concern.

Climate change is also threatening septic systems. Around 20% of U.S. households rely on septic tanks, many located in coastal areas affected by rising sea levels. This has led to issues like backed-up pipes and foul-smelling yards.

Despite clear evidence, not everyone accepts the reality of climate change: