This week ahead || Oct 16th - Oct 20th 2023
Here's some news for the week ahead.
Amazon, Exxon Hydrogen Hubs Get Slice of $7 Billion US Funds
The US government has announced $7 billion in funding for seven hydrogen projects, with the goal of making the country a leader in hydrogen production. The projects, spanning from Pennsylvania to California, will create hydrogen hubs, which are broad networks of hydrogen producers and consumers spanning multiple states. These hubs are part of the Biden administration's net-zero emissions goal. While almost no hydrogen is currently produced in the US, the government aims to increase production to 10 million metric tons by 2030. The funding will also help reduce the cost of hydrogen production by 80% by 2030.
'Fog on the horizon': CEOs brace for recession
Amid rising geopolitical tensions, escalating inflation, surging bond yields, and the Federal Reserve's "higher for longer" stance, concerns about a US recession are growing. According to a survey of business leaders, 72% of CEOs are preparing for a recession in the next 12-18 months. While consumer spending has been a key driver of economic resilience, cracks are beginning to appear in this area. Consumer sentiment has recently dropped, primarily due to expectations of higher inflation next year. High and persistent inflation could lead to more rate increases, extended restrictive monetary policy, and increased recession risk. The economic outlook remains uncertain, with many business leaders and analysts expressing caution.
Amid international crises, US Congress handcuffed by Republican feud
As conflict rages in the Middle East and Ukraine, the US Congress is grappling with internal Republican disputes that are stalling legislative action. The House of Representatives has been leaderless for 12 days after Speaker Kevin McCarthy was ousted. This has prevented congressional action on issues like further aid to Ukraine and a statement of support for Israel in its conflict with Hamas. A resolution remains elusive as Republicans are divided over the selection of a new Speaker, with hardliner Jim Jordan nominated but facing an uncertain vote. The uncertainty and dysfunction are concerning many, including within the Republican Party, who fear it's giving comfort to the nation's adversaries.
Backlog at Israeli ports grows as country steps up shipping supplies
The backlog of ships at Israeli ports is growing due to ongoing operations at most terminals and military preparations for a ground assault in the Gaza Strip. This is a result of the recent conflict in the region. Israel has faced heavy rocket barrages, which prompted the closure of Ashkelon port, the nearest terminal to Gaza, and restrictions on the transport of hazardous materials at Ashdod port. At least three cargo and dry bulk ships bound for Ashdod are waiting nearby, and around 13 ships are moored inside Ashdod port. Wait times for ships docking in Israel have traditionally been longer than in other ports, and marine war insurance rates have surged. The situation raises concerns about potential disruptions to vital shipping chokepoints in the region.
