Global Scans · Trade · Weekly Summary

WHAT'S NEXT?: Global trade policies could be upended with a new President in the White House, Brexit, a potential break-up of the European Union and China reacting to these changes in profound ways.

• [New] On the path to climate neutrality, the heterogeneous distribution of renewable energy resources might change global patterns of industrial production and trade of basic materials. Nature
• [New] To avert an energy deficit that could cripple production, the state-owned electricity utility, Zesco, has announced it's seeking to import power from neighboring countries. Zambian Mining News
• [New] Zambia Seeks Power Imports for Key Mining Sector Zambia's state-owned electricity utility Zesco said on Monday it is seeking to import power to avert an energy deficit that could affect output in Africa's second-largest copper producer. Centro de estudos estrategicos de Africa
• [New] The pledge of achieving carbon peak before 2030 and carbon neutrality before 2060 is a strategic decision that responds to the inherent needs of China's sustainable and high-quality development, and is an important driving force for promoting China's ecological civilization constructions. PubMed Central (PMC)
• [New] Global competition is expected to further intensify in the coming years, especially as Chinese carmakers look to export in the context of battery and EV oversupply. IEA
• [New] If Beijing continues to address its growth challenges by doubling down on manufacturing exports, without taking steps to boost domestic demand, it will spur imbalances that are simply untenable for the rest of the global economy. Center for Strategic and International Studies
• [New] Geopolitical factors continue to cloud the picture for global trade and could well weaken projected growth in the coming 18 months. British Chamber of Commerce in Indonesia
• [New] Interest rates will likely remain stubbornly high for longer than previously expected, while the global economy adjusts to structural challenges, including fractured trade relationships, emerging geopolitical risks, and technological barriers to decarbonizing the global economy by 2050. Business Council of Canada
• [New] We expect pipeline imports from Canada to remain a key supply source, particularly for the U.S. Midwest region during winter months. EIA - Energy Information Administration
• [New] Despite stronger growth in some trading partners (the United States, in particular), the contribution from net exports will generally decrease in 2024 as the pickup in domestic demand leads to a gradual increase in imports. IMF eLibrary
• [New] The price of energy fell faster than expected from its peak, in part as a result of increased non-OPEC (Organization of the Petroleum Exporting Countries) oil production and increased natural gas output, most notably in the United States. IMF eLibrary
• [New] Jordan aspires to develop technology to exploit renewable energy sources and the opportunities available in the energy transition in order to become a regional hub for the production and export of green energy. Fana News
• [New] UN Trade and Development (UNCTAD) has warned of a possible further growth deceleration in 2024, citing falling investments and subdued global trade dynamics. The Star
• [New] Influential industry groups are urging governments to push adoption of the legal entity identifier (LEI) system, arguing wider uptake could cut trade costs by US$100bn and widen access to financing for smaller companies. Global Trade Review (GTR)
• [New] Analysts expect metals of Russian origin to trade at even steeper discounts and continue flowing to countries unaffected by sanctions, particularly China. oilprice.com
• [New] Around 30% expect bureaucratic obstacles and significantly rising costs as a result of the Carbon Border Adjustment Mechanism, which the EU is introducing for imports into its community of states and which will differ significantly from the UK CBAM. KPMG
• [New] Chinese carmaker Chery said on Friday its newly-acquired Barcelona plant will be one of its main exporting facilities worldwide, aiming to produce 150,000 vehicles a year by 2029 as part of a joint venture with Spanish firm EV Motors. Yahoo Finance
• [New] The problem of piracy is as old as the history of maritime navigation, threatening freedom of maritime navigation and destabilizing global trade and security. ReliefWeb
• [New] The next five years are expected to see India exerting more significant economic influence across the Asia-Pacific region, positioning it as a key player in shaping regional trade dynamics and monetary policies (Source: Baker McKenzie & Mergermarket Group). FinancialExpress
• [New] Business and consumer confidence remain particularly weak which could lead to more unemployment and financial stress than expected while structural challenges facing the economy in China remain a concern given its importance for the global economy and for New Zealand's trade. IC Markets | Official Blog

Last updated: 25 April 2024