Japan has unveiled one of its biggest economic transformation plans in decades, announcing a massive 370 trillion yen ($2.5 trillion) investment strategy through 2040. Prime Minister Sanae Takaichi's government aims to strengthen Japan's leadership in artificial intelligence, semiconductors, biotechnology, defense, clean energy, and shipbuilding while boosting long-term economic growth.

The ambitious blueprint is designed to improve productivity, reduce dependence on China, and keep Japan competitive in the global AI race. However, economists and investors are raising concerns over how the government plans to finance the enormous spending package, especially with Japan already carrying one of the world's highest public debt burdens.

Japan Unveils $2.3 Trillion Economic Plan | AI, Semiconductors & Defense Push | Wion News 

Tens of thousands of dockworkers have launched an indefinite strike at major US ports, posing a threat to trade and the economy just before the presidential election and holiday shopping season. Members of the International Longshoremen's Association (ILA) walked out on Tuesday, halting container traffic at 14 major ports along the East and Gulf coasts, from Maine to Texas. This is the first large-scale shutdown in nearly 50 years. While President Joe Biden has the authority to suspend the strike for 80 days to allow for further negotiations, the White House has indicated no plans to intervene.

USA Port Strike Paralyzes Supply Chains,  Port Shutdown Sparks Supply Fears

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported.<o:p></o:p>

Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal. <o:p></o:p>

The resulting turmoil has doubled ocean freight rates for goods from Asia to Europe over the past four weeks, casting a shadow on hopes for a smooth economic recovery.<o:p></o:p>

Geopolitical tensions push up oil prices and add to inflation fears<o:p></o:p>

As geopolitical tensions escalate with persistent attacks in the Red Sea, oil prices experienced a significant surge after the US and UK led a military response. <o:p></o:p>

Global benchmark Brent briefly topped $80 a barrel, marking a 4.3 per cent increase. <o:p></o:p>

Mohamed El-Erian, President of Queens' College, Cambridge, and a Bloomberg Opinion columnist, expressed concern, stating, "This is a world in which we are fragile to begin with on the supply side, and then you get this additional shock."<o:p></o:p>

Supply chains vulnerable amid shipping disruptions<o:p></o:p>

While the shipping disruptions are not as severe as those witnessed during the pandemic, the blockages in two critical trade arteries – the Red Sea and Central America's Panama Canal – are raising alarms within the industry. <o:p></o:p>

Bloomberg cited Stephen Lamar, the President of the American Apparel &amp; Footwear Association, who said, "This is a very dramatic reminder that supply chains continue to be very fragile," and he highlighted its potential inflationary impact across the freight industry.<o:p></o:p>

Experts assess the inflationary impact and economic ramifications<o:p></o:p>

Analysts are grappling with the potential inflationary impact, particularly in Europe and the US, as the disruptions unfold. <o:p></o:p>

Ziad Daoud of Bloomberg Economics suggests that while the conflict in the Red Sea may not spill over into the wider region, limiting economic damage, the full extent of the inflationary impact will take time to become clear. <o:p></o:p>

Economists at Allianz Trade estimate that a doubling of shipping costs could lift inflation by 0.7 percentage points for Europe and the US. <o:p></o:p>

Oxford Economics projects that a permanent $10 increase in the price of a barrel of oil could add 0.22 percentage points to UK inflation and 0.29 points to global inflation in 2024.<o:p></o:p>

Companies react to mitigate disruption, impact on consumers uncertain<o:p></o:p>

Companies are already taking measures to mitigate the disruption caused by the Red Sea attacks. <o:p></o:p>

Volvo Car AB and Tesla Inc. are among those adjusting production schedules due to supply chain disruptions. <o:p></o:p>

Grocery chain Tesco Plc in the UK has warned of potential inflation pressures, anticipating extended shipping times and increased costs if vessels must circumnavigate Africa to reach Europe. <o:p></o:p>

Craig Akers, Director of Operations at the Toy Shippers Association, humorously termed this period the 'canal crisis,' highlighting the uncertainty retailers and manufacturers face in the coming months.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported. Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal.

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported. Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal. The resulting turmoil has doubled ocean freight rates for goods from Asia to Europe over the past four weeks, casting a shadow on hopes for a smooth economic recovery. Geopolitical tensions push up oil prices and add to inflation fears As geopolitical tensions escalate with persistent attacks in the Red Sea, oil prices experienced a significant surge after the US and UK led a military response. Global benchmark Brent briefly topped $80 a barrel, marking a 4.3 per cent increase. Mohamed El-Erian, President of Queens' College, Cambridge, and a Bloomberg Opinion columnist, expressed concern, stating, "This is a world in which we are fragile to begin with on the supply side, and then you get this additional shock." Supply chains vulnerable amid shipping disruptions While the shipping disruptions are not as severe as those witnessed during the pandemic, the blockages in two critical trade arteries – the Red Sea and Central America's Panama Canal – are raising alarms within the industry. Bloomberg cited Stephen Lamar, the President of the American Apparel & Footwear Association, who said, "This is a very dramatic reminder that supply chains continue to be very fragile," and he highlighted its potential inflationary impact across the freight industry. Experts assess the inflationary impact and economic ramifications Analysts are grappling with the potential inflationary impact, particularly in Europe and the US, as the disruptions unfold. Ziad Daoud of Bloomberg Economics suggests that while the conflict in the Red Sea may not spill over into the wider region, limiting economic damage, the full extent of the inflationary impact will take time to become clear. Economists at Allianz Trade estimate that a doubling of shipping costs could lift inflation by 0.7 percentage points for Europe and the US. Oxford Economics projects that a permanent $10 increase in the price of a barrel of oil could add 0.22 percentage points to UK inflation and 0.29 points to global inflation in 2024. Companies react to mitigate disruption, impact on consumers uncertain Companies are already taking measures to mitigate the disruption caused by the Red Sea attacks. Volvo Car AB and Tesla Inc. are among those adjusting production schedules due to supply chain disruptions. Grocery chain Tesco Plc in the UK has warned of potential inflation pressures, anticipating extended shipping times and increased costs if vessels must circumnavigate Africa to reach Europe. Craig Akers, Director of Operations at the Toy Shippers Association, humorously termed this period the 'canal crisis,' highlighting the uncertainty retailers and manufacturers face in the coming months. (With inputs from Bloomberg)

Red Sea attacks spark global inflation fears, disrupting supply chains

Chinese companies from the mainland, investing in minerals used in the renewable energy industry, have been accused of human rights and environmental violations, a report released by an international NGO has revealed.

Chinese companies from the mainland, investing in minerals used in the renewable energy industry, have been accused of human rights and environmental violations, a report released by an international NGO has revealed. The Business & Human Rights Resource Centre in its report said that Chinese companies have been accused of more than 100 human rights and environmental abuses around the world since 2021. Chinese firms were accused of abuse across 18 countries, of which, a quarter of the abuse instances took place in Indonesia alone (27). Meanwhile, 16 cases were reported in Peru, 12 in DRC, 11 in Myanmar and seven in Zimbabwe. The abuses include Indigenous rights violations, attacks against grassroots leaders, water pollution, ecosystem destruction and unsafe working conditions. "Our data shows human rights and environmental abuse is prevalent in the exploration, extraction and processing of transition minerals," a spokesperson for the NGO was quoted as saying by AFP. "Local communities are bearing the brunt of these abuses." WATCH | US & China at odds over Taiwan, trade & human rights | Beijing's assertive posture in Indo-Pacific × China is extremely dominant in the green-energy market. From processing and refining of cobalt, copper, manganese, nickel, zinc, chromium, lithium and rare-earth elements, to manufacturing of technologies like solar panels, wind turbines and batteries for electric vehicles (EV) - China is actively involved in every process. Under President Xi Jinping, China is heavily investing in resource-rich countries such as Indonesia, Zimbabwe, and Peru where the governments are unable to develop technology or have the money required to efficiently gather the raw material. Also read | China vs US contest: Who is the bigger human rights violator? Following the same old script of exploitation? The report highlights that the transition from non-renewable energy to renewable energy is following similar exploitative habits that have long dominated fossil fuel and mineral extraction operations. “The bottom line is if the energy transition is not fair, it will not be as fast as it needs to be and we will fail to meet our climate deadlines,” said Betty Yolanda, the organisation’s Director of Regional Programs. Apart from China, Canadian, US, UK, Australian and European companies and investors have also been accused of human rights violations. labour abuse and environmental harms. With most nations pressing towards developing renewables, the use of these minerals is expected to grow six-fold by 2040. The NGO called on China and governments across the board to take "urgent action" to mitigate the harm caused by the transition. (With inputs from agencies) WATCH WION LIVE HERE:

Chinese companies accused of human rights abuses in critical minerals supply chains

Climate change is affecting the world rapidly in ways unimaginable. It has disrupted supply chains as the rise in sea levels poses a major threat.

Climate change disrupts supply chains as the rise in sea levels poses a major threat

Popular chocolate bar, Bounty, may be the next victim of the ongoing supply chain crisis in the UK and other European countries.

The chocolate giant, Mars, has reported that Bounty, which is one of its highest selling bars, is facing shortages in Russia due to the fall in its supply of raw materials in Europe.

Also read |&nbsp;<a href="https://www.wionews.com/world/no-cheer-this-year-uk-might-face-a-crisis-of-christmas-food-due-to-visa-restrictions-417435">No cheer this year? UK might face a crisis of Christmas food due to visa restrictions</a>

The confectionary giant has warned its customers in Russia that the popular chocolate bar may face shortage in the next few months as experts have predicted possible lack of coconut flakes. These coconut flakes are the unique ingredient in the Bounty chocolate bar.

However, local reports have also stated that there might be 'forced restriction' behind this façade of lack of supplies for the Bounty brand. A letter warns that even though the demand has increased for this chocolate-coconut bar, the warehouses should have enough to meet the demand by mid-October.

Also read |&nbsp;<a href="https://www.wionews.com/world/watch-uk-fuel-crisis-as-people-wait-in-queues-man-rides-horse-into-gas-station-mocks-those-waiting-to-fill-up-on-fuel-417393">Watch: UK Fuel crisis, as people wait in queues, man rides horse into gas station, mocks those waiting to fill up on fuel</a>

At the same time, the reports have been rubbished and authorities have stated that the lack of raw materials is a result of poor harvest of coconut chips this time. Philippines, which is the second largest coconut producer of the world, was hit by typhoons which destroyed more than 49 million trees.

The destruction of these trees have resulted in a poor harvest and analysts believe it will take nearly two to three years for the industry to come out of that loss.

This has come a little after it has been revealed that the UK will be facing shortage of Christmas food, especially meat products due to the lack of raw material. The UK has also been fighting a fuel crisis which has been a direct consequence of Brexit.

Popular chocolate bar, Bounty, may be the next victim of the ongoing supply chain crisis in the UK and other European countries. The chocolate giant, Mars, has reported that Bounty, which is one of its highest selling bars, is facing shortages in Russia due to the fall in its supply of raw materials in Europe.

Popular chocolate bar, Bounty, may be the next victim of the ongoing supply chain crisis in the UK and other European countries. The chocolate giant, Mars, has reported that Bounty, which is one of its highest selling bars, is facing shortages in Russia due to the fall in its supply of raw materials in Europe. Also read | No cheer this year? UK might face a crisis of Christmas food due to visa restrictions The confectionary giant has warned its customers in Russia that the popular chocolate bar may face shortage in the next few months as experts have predicted possible lack of coconut flakes. These coconut flakes are the unique ingredient in the Bounty chocolate bar. However, local reports have also stated that there might be 'forced restriction' behind this façade of lack of supplies for the Bounty brand. A letter warns that even though the demand has increased for this chocolate-coconut bar, the warehouses should have enough to meet the demand by mid-October. Also read | Watch: UK Fuel crisis, as people wait in queues, man rides horse into gas station, mocks those waiting to fill up on fuel At the same time, the reports have been rubbished and authorities have stated that the lack of raw materials is a result of poor harvest of coconut chips this time. Philippines, which is the second largest coconut producer of the world, was hit by typhoons which destroyed more than 49 million trees. The destruction of these trees have resulted in a poor harvest and analysts believe it will take nearly two to three years for the industry to come out of that loss. This has come a little after it has been revealed that the UK will be facing shortage of Christmas food, especially meat products due to the lack of raw material. The UK has also been fighting a fuel crisis which has been a direct consequence of Brexit.

After Christmas food, chocolate bar Bounty falls prey to supply chain crisis

The Biden administration announced a series of steps it will take in order to strengthen critical US supply chains, building up domestic manufacturing capabilities for key products. US President Joe Biden in February ordered a 100-day interagency review of domestic supply chains.

Biden administration announces plans to strengthen supply chains

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