Surging oil

- A + A KUALA LUMPUR (June 27): Costlier crude oil along with a stronger US dollar will erode Spritzer's Bhd profit margin, the bottled water producer admitted. "Costlier oil will translate into costlier PET resin, which is the main raw material used in making the [plastic] bottles. "PET resin is normally quoted in US dollar so a stronger US dollar would mean we will have to pay more for our PET resin," a company representative said in a brief email reply to theedgemarkets.com recently, when asked about the impact of surging oil prices on its manufacturing costs. According to the US-based PET Resin Association, PET — which is short for polyethylene terephthalate, the chemical name for polyester — is a clear, strong, and lightweight plastic made from crude oil and ethane extracted from natural gas that is widely used for packaging food and beverages, especially convenience-sized soft drinks, juices and water. Following Russia's incursion into Ukraine, oil prices … [Read more...] about Spritzer admits costlier crude oil, stronger US dollar will erode its profit margin

A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here . You can listen to an audio version of the newsletter by clicking the same link. London (CNN Business) Europe and the United States have barred the import of Russian oil to cut off a crucial revenue source for the Kremlin. But the plan to pile pain on President Vladimir Putin, forcing him to reconsider his war in Ukraine, hasn't worked . Russia's government is making just as much money from energy exports as it was before the invasion. Meanwhile, inflation is surging globally, adding to political pressure on heads of state such as US President Joe Biden, British Prime Minister Boris Johnson and French President Emmanuel Macron. That's forcing leaders from top economies who have gathered in Germany for a G7 meeting to consider a new route: slapping price caps on Russian crude . "The goal here is to starve Russia, … [Read more...] about Price cap on Russian oil could shake up the market

Share to Twitter Share to Linkedin Data analytics provider CoreLogic has released its 2022 hurricane report, which analyzes storm surge and hurricane wind risk levels for single-family residences and multifamily residences along the Gulf and Atlantic Coasts. CoreLogic risk modeling data shows that nearly 7.8 million homes with more than $2.3 trillion in combined reconstruction cost value are at risk of hurricane-related damages. The report also revealed that nearly 33 million homes with nearly $10.5 trillion in combined reconstruction cost value are at risk of hurricane-force wind damages. The National Oceanic Atmospheric Association forecasts an above-normal 2022 hurricane season with as many as 21 named storms and up to 10 hurricanes, three to six of which could be major hurricanes. “This hurricane season could be particularly severe for the U.S. Gulf Coast due to warmer-than-average Atlantic Ocean temperatures, an ongoing La Niña and a stronger … [Read more...] about Areas Most At Risk Of Hurricane-Force Wind And Storm Surge Damage

A flood-affected man carrying a luggage wades through a flooded road as he moves to a safer place after heavy rains in Nagaon district, Assam, India, June 21, 2022. - A + A (June 27): India’s flood-hit areas are forecast to receive heavy rains this week, with 532 people losing their lives so far across the nation during the monsoon season and hundreds of thousands staying in temporary relief camps. The northeastern state of Assam has been among the worst-hit regions, with rains affecting 2.5 million people, destroying homes and infrastructure, and delaying sowing of crops such as rice. Drowning and landslides have killed 121 people in the state alone since April 6, according to a home ministry bulletin. Monsoon rains cause the death of hundreds of people in India every year, but the rainy season has been particularly devastating for the hilly states of Assam and Himachal Pradesh this year. About 233,000 people are still in relief camps, with over two dozen teams … [Read more...] about Flood-hit Indian states brace for more monsoon rains, 532 killed

Share to Twitter Share to Linkedin Topline The Federal Reserve’s “heightened sensitivity” to rising inflation expectations could be triggered by a barrage of political ad campaigns that are expected to highlight surging consumer prices ahead of the midterm elections in November, analysts at Goldman Sachs warned on Friday, adding that the central bank may feel “compelled” to keep hiking rates aggressively. Key Facts With the midterm elections looming in November, surging consumer prices will be a major issue for voters—especially as long-term inflation expectations have surged in recent months, according to the latest consumer sentiment survey released by the University of Michigan on Friday. Meanwhile, the Federal Reserve watches long-term inflation expectations closely, and used it in its decision earlier this month to raise interest rates by 75 basis points—the largest increase since 1994. The central bank’s “strong reaction” to the … [Read more...] about Political Ads Targeting Inflation Ahead Of Midterm Elections Could Force The Fed To Keep Hiking Rates: Goldman Sachs

- A + A GDANSK/BENGALURU (June 27): UK's FTSE 100 ended at a more than one-week high on Monday, as an easing of Covid restrictions in China and the prospect of global infrastructure funding brought relief to commodity prices, lifting shares of major oil and mining companies. The commodity-heavy FTSE 100 rose 0.7% and hit its highest closing level since June 16, while the domestically focused mid-cap FTSE 250 index advanced 1.0%. Risk sentiment improved as easing Covid curbs in Shanghai and relaxed testing mandates in several Chinese cities supported base metal prices. "The burst of global enthusiasm for equities has put a spring in the step of the FTSE 100 at the start of the week," Hargreaves Lansdown analyst Susannah Streeter said. Oil majors Shell and BP both rose over 1.5%, leading gains on the index. Meanwhile, mining stocks Anglo American, Rio Tinto and Glencore gained between 1.7% and 3% after Group of Seven leaders pledged to raise US$600 … [Read more...] about Commodity stocks drive FTSE 100 to more than one-week high

- A + A (June 28): Runaway food inflation may be tamed soon — at least temporarily — as farm commodities tumble after a surge that pushed up prices of everything from bread to chicken wings. Four months after Russia’s invasion of Ukraine upended trade flows and sent futures soaring, fear of grain shortages is giving way to optimism that key producers will reap harvests large enough to help replenish war-pinched reserves. That’s critical for the wheat needed to feed the world; the corn to nourish hogs, chicken and cattle; and the oilseeds to process food. “Supply may not be as impaired as we think because other areas will compensate for any losses from Ukraine, and it is happening across the board,” said Marc Ostwald, a global strategist at ADM Investor Services in London. Australia, one of the biggest wheat exporters, is forecast to produce another huge crop this year, while Brazil’s biggest-growing area has so much corn it’s piling up outside bins. Nervousness … [Read more...] about Food inflation relief within sight as crops and crude pull back