Shock

• Major central banks are continuing to tighten monetary policy to combat energy price shocks. • Norges Bank kept interest rates at 4.25% in August, while the Norwegian economy grew by only 0.3% in the second quarter. • Markets expect one more quarter-point rate hike by the end of the year, which increases borrowing costs for businesses and consumers.

• Crude oil prices exceeding $100 per barrel are creating a simultaneous price and supply shock across Asia. • Middle East output is falling, leading analysts to warn of lasting demand destruction as fuel demand drops and inflation rises. • High costs may force companies to improve efficiency and push consumers toward electric vehicles or altered travel habits.

• Indian Prime Minister Narendra Modi warned BRICS leaders on Sunday that geopolitical tensions, supply chain shocks, and climate crises are threatening global stability. • Modi specifically cautioned that the weaponization of technology and critical minerals could hinder shared prosperity and global development. • These disruptions create economic risks for the Global South, necessitating strengthened international cooperation to protect developing nations.

• India is building rice buffers to protect against potential trade crises or weather-related production disruptions. • The country currently maintains rice stocks that exceed its own domestic needs. • These strategic reserves aim to stabilize the local market and ensure food security during global supply shocks.

• The Philippine economy faced a series of systemic shocks over the past year, including domestic corruption and global geopolitical instability. • A flood control corruption scandal restricted state spending while overseas conflicts triggered a global energy shock that increased domestic prices. • These events highlight structural vulnerabilities that threaten the long-term resilience of the national economy.

• European Central Bank President Christine Lagarde stated that the inflation shock affecting the Eurozone will persist longer than previously expected. • The central bank leader indicated that price pressures are remaining stubborn across the currency bloc. • This outlook suggests that interest rates may stay higher for a longer period to combat rising costs for consumers and businesses.

• English teams dominated the opening round of the Champions League league phase, leading in expected goal difference by country. • Italian teams struggled during the first round, with Italy ranking at the bottom of the expected goal difference chart. • This performance gap suggests a current disparity in competitive strength between the English and Italian markets in European football.