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The International Monetary Fund (IMF) has issued a warning that emerging economies are facing a heightened risk of financial instability due to their increased reliance on market-based finance, particularly from hedge funds and investment funds. A cumulative $4tn flowed into emerging markets last year from outside the formal banking sector, which can bring benefits but also poses significant risks.The IMF's analysis suggests that this type of financing can be more volatile than traditional bank financing and is more likely to be withdrawn suddenly in times of financial stress. This can lead to abrupt retrenchments, intensify external financing pressures, raise borrowing costs, and trigger sharp currency depreciations, ultimately weighing on economic growth.The IMF highlights that some countries are already experiencing these challenges, particularly in the context of the war in the Middle East. Several emerging markets are experiencing a reversal of capital flows from non-resident non-bank investors, which can have a significant impact on their economies.The IMF also notes that hedge funds and mutual funds have the highest propensity to withdraw during market volatility, while pension funds and insurers tend to be more cautious. Additionally, the IMF warns about the growing flows of stablecoins into emerging economies, which can be vulnerable to wider fluctuations in cryptocurrency markets.The IMF's managing director, Kristalina Georgieva, warned that the conflict will lead to higher prices and slower growth, adding that even if the war were to stop today, there would be a lingering negative impact on the rest of the world.

In the face of rising fuel costs, Sydney commuters are increasingly turning to bicycles as a viable alternative for their daily commutes. This shift is reminiscent of Copenhagen's response to the 1970s global oil crisis, where the city dramatically expanded its bicycle network.Recent data shows a significant increase in cycling activity in Sydney. In March, there were 600,000 bike-sharing trips in the City of Sydney, a 25% increase from the previous month. Additionally, thousands of cars have disappeared from Sydney's roads, with car traffic falling by around 5% in March compared to the previous year on major arterial roads.The surge in cycling is also reflected in the sales of electric bikes. At 99 Bikes, ebike sales have surged by 136% year on year in the past week. Bike retailers are experiencing booming business, with many customers citing high petrol prices as the reason for purchasing a bicycle or ebike.According to Australian Automobile Association (AAA) data, in the last quarter of 2025, the average Australian household spent about $453 per week on car-running costs. With unleaded petrol prices peaking at almost 260c per litre in April, a 50% increase from last year, the financial incentive for switching to bicycles is clear.Experts see this trend as an opportunity for a green revolution in transportation. Peter McLean, the CEO of Bicycle NSW, suggests that governments should capitalize on the cycling boon by investing heavily in active transport infrastructure rather than relying on short-term fuel excises.

Iran is experiencing the longest nationwide internet blackout ever recorded, according to the global monitoring group NetBlocks. Since the United States and Israel launched their war on Iran on February 28, connectivity has hovered at about 1% of pre‑war levels, effectively cutting the country off from the global web. The blackout follows a prior 20‑day shutdown in January, which coincided with deadly nationwide protests. Combined, these measures mean that Iranian civilians have spent close to two‑thirds of 2026 in digital darkness, relying only on a slow, state‑controlled intranet for basic services and state‑run news. NetBlocks highlighted that while regions such as Myanmar, Sudan, Kashmir and Tigray have endured longer intermittent outages, no other war has forced an entire nation offline to this extent. The monitor added that Iran is the first country to lose previously functional internet connectivity by reverting to a national network. Economic analysts warned that the January shutdown already caused the economy to lose tens of millions of dollars each day in direct damages, with far‑reaching indirect effects. Companies reported that many online businesses could not survive more than three weeks without connectivity, leading to a wave of layoffs and reduced pay raises. One affected worker, Kamran, a product designer in Karaj, said he was dismissed after the latest wave of cuts. He now relies on a local skill‑matching group, but fears competition from thousands of similarly displaced workers. A senior data analyst from a Tehran firm disclosed that the firm is offering lower-than‑expected raises and shifting to three‑month contracts, creating uncertainty about future employment. Compounding the digital crisis, the war has targeted Iran’s steel factories, petrochemical plants and other civilian infrastructure, aggravating pre‑existing problems of high inflation and unemployment. Only a limited segment of the population can access the global internet—either because they are whitelisted by the state or because they pay steep fees for proxy connections that often disappear after a few hours. Government spokeswoman Fatemeh Mohajerani stated that internet access is being granted only to those who can “get the voice out,” such as officials, state‑affiliated entities and news agencies. Citizens on the ground describe a grim reality: frequent power outages, uncertainty about water supplies, and an inability to use services like Google Search or AI tools, even as they watch live feeds from space missions that remain inaccessible. In response to the prolonged shutdown, authorities have begun rolling out a tiered system dubbed “Internet Pro.” Business groups have received a “guide to connect to international internet,” urging them to contact a state‑run messaging app, Bale, for registration. Parallel efforts by a major telecom carrier offer one‑year data packages at prices higher than normal plans, while existing providers have not refunded customers for services they cannot deliver. President Masoud Pezeshkian’s administration, which campaigned on unblocking Iran’s internet, has offered no official explanation for the shutdown, leaving both the battered digital sector and the broader economy facing an uncertain future.

In the face of a downbeat hospitality trend in the UK, food halls are emerging as a beacon of hope, offering a diverse culinary experience that is proving resilient to economic challenges. The Cambridge Street Collective in Sheffield, Europe's largest purpose-built food hall at 20,000 sq ft, exemplifies this trend. Opened in 2024, it features a variety of vendors offering everything from sushi tacos to Palestinian cuisine.The food hall sector is experiencing significant growth, with major UK cities averaging £5.6m in annual revenue and a year-on-year growth rate of 10.75%. This growth is attributed to the shared infrastructure and risk model, where vendors pay a cut of their sales each month, and the owner covers costs such as energy and staffing. This model allows for a lower-risk entry point for entrepreneurs and innovative food concepts.65 new food halls are currently in development across the UK, including a 60,000 sq ft venue in Newcastle and a growing scene in cities like Manchester, Liverpool, and London. These food halls are not just about food; they offer a community space where people can work, socialize, and enjoy a variety of cuisines.Matt Farrell, founder of Bold Street Coffee, notes that food halls have become incubators for new businesses, providing opportunities for operators who can't afford traditional sites. James Cowan of Blend Collective, the owner of Cambridge Street Collective, emphasizes the importance of hosting local businesses and keeping the offering fresh.Successful food hall vendors have gone on to open their own brick-and-mortar restaurants, such as Baity, a Palestinian chain with sites in multiple cities, and Bao, which started in London's Netil Market. These success stories highlight the potential for food halls to foster culinary innovation and entrepreneurship.While some may wonder if the UK has reached peak food hall, industry experts believe there is still room for growth, particularly in areas with high demand and limited offerings. As the economic climate continues to evolve, food halls are likely to remain a vibrant part of the UK's culinary landscape.

In Lebanon, the war with Israel has severely impacted the traditional funeral process. Normally, the deceased are given a final procession through their hometown before burial. However, due to Israel's expanding ground invasion in south Lebanon, families are being forced to abandon these customs.In Tyre, temporary graves have been established with brief epitaphs marking the deceased. The burials are conducted using a special Islamic rite called wadiaa, which allows for the casket, but not the body, to be exhumed later. This practice is usually reserved for exceptional circumstances like war.Rabih Koubaissi, who oversees burials in Tyre, noted that people have an emotional attachment to burying their loved ones in their ancestral land, reflecting their sense of belonging and heritage. The brutality of war has made it impossible to follow traditional washing and preparation of bodies, sometimes only collecting pieces of bodies for burial.Families face the heartbreaking reality of having to bury their loved ones twice. The Israeli military's plan to occupy areas south of the Litani River indefinitely raises fears that reburials may not be possible for months or even years. This situation has left the deceased with few visitors, as most families have been forced to leave Tyre due to increased attacks.Hecham Reda, a medic, expressed his fear of not being able to rebury his friend Hadi back home, reflecting the anxiety many people from south Lebanon are experiencing. Koubaissi finds it difficult to comfort grieving families, trying to convey sympathy without revealing the harsh realities of the situation.

The US labor market demonstrated unexpected strength in March, with employers adding 178,000 jobs, significantly exceeding economists' predictions of around 70,000. This growth comes after a revised report showed that the economy lost 133,000 jobs in February, a worse figure than initially stated. The unemployment rate decreased to 4.3%, according to data from the US Bureau of Labor Statistics. The job figures for January were revised upward from 126,000 to 160,000. With these revisions, total employment in January and February is 7,000 lower than previously reported. Despite the positive March numbers, the overall trend in the US jobs market has been sluggish since last year. In 2025, only 116,000 jobs were added to the economy for the entire year, which is roughly the same number added per month in previous years. The slowdown in hiring is attributed to caution among employers, particularly due to consumer inflation experiencing fluctuations over the last year. US inflation dipped to 2.3% in April 2025 before rising to 3% in September. Since the start of this year, price increases have remained steady at 2.4%. The ongoing US-Israel war with Iran is expected to drive inflation higher if the situation escalates. The labor market's uncertainty is also reflected in the 'quits rate,' which fell to 1.9%, the lowest since 2020. This suggests that workers are choosing to stay in their current jobs due to uncertainty in the labor market. Adding to the economic pressure, US average gas prices recently surpassed $4 a gallon, and experts warn that every $10 increase in the price of a barrel of oil can lead to a 0.2% climb in inflation, reminiscent of the price shocks seen in 2022 following Russia's invasion of Ukraine.

One year ago, US President Donald Trump introduced a 10% global tariff, sparking a trade war with far-reaching consequences. The immediate impact was severe, with the stock market experiencing its worst drop since the pandemic. In response, countries scrambled to negotiate deals with Washington or retaliate with their own tariffs. Recently, the Supreme Court ruled that most of Trump's tariffs are illegal, citing the president's lack of authority to impose broad, open-ended tariffs under a national emergency. However, this ruling did not end the trade war. Within hours, Trump invoked a different statute to launch a temporary tariff, set to expire in July. The effects of the tariffs have already reshaped the US economy. The average effective US tariff rate surged from 2.6% to over 13%, the highest level since World War II. This significant increase has led to higher costs for American consumers. According to the Tax Foundation, US households paid $1,000 more in 2025 for the same goods. Tarrifs work by imposing a tax on foreign goods and services, making them more expensive and encouraging local purchases. Despite Trump's promise that tariffs would reduce the trade deficit and make the US richer, the reality is that the average US consumer is worse off. The Penn Wharton Budget Model reports that the US collected over $287.1 billion in customs duties in 2025 and $64.4 billion in 2026. Economists at the Federal Reserve Bank of New York found that nearly 90% of the economic burden from tariffs has fallen on US businesses and consumers, with foreign exporters absorbing only a small percentage of the cost. Lower-income households have been disproportionately affected, as they spend a higher proportion of their earnings on essential goods like food, clothing, and transportation. Following the Supreme Court's ruling, the government may be required to refund up to $175 billion to businesses that paid the tariffs. With Trump's tariffs being replaced by a flat 10% tariff, the Tax Foundation projects that the average cost to US households will fall to about $600. While an improvement, it remains a significant cost for consumers.

Kenya's tea industry is experiencing a severe crisis as a result of the escalating tensions between the United States and Israel against Iran. The conflict has significantly impacted the global economy, and Kenya's tea sector is no exception. The US-Israeli war on Iran has led to increased uncertainty and volatility in the global market, affecting Kenya's tea exports. As one of the world's largest tea producers, Kenya relies heavily on international trade for its tea. The crisis has raised concerns about the future of Kenya's tea industry, which is a significant contributor to the country's economy. The industry provides employment opportunities for thousands of Kenyans and generates substantial revenue for the government. The situation is being closely monitored by industry stakeholders and government officials, who are working to mitigate the effects of the crisis on the tea sector. Potential solutions and strategies are being explored to help Kenya's tea industry recover and stabilize in the face of this challenge.

A Russian-flagged tanker, the Anatoly Kolodkin, has arrived in Cuba with a cargo of 730,000 barrels of oil, marking the first oil tanker to reach the island in three months. The vessel, under US sanctions, was permitted to deliver fuel for humanitarian reasons.The tanker docked in the Bay of Matanzas, Cuba's largest supertanker and fuel storage port, on Tuesday. Much of the nearby city and the majority of Cuba were without power when the tanker arrived. Cuba has been experiencing an energy crisis, with President Miguel Diaz-Canel stating that the country has not received an oil tanker in three months.The fuel shipment is expected to provide breathing room for Cuba's communist-run government amid growing pressure from the US. The crude on board will take days to process domestically and turn into motor fuel and refined products. The ship is carrying Russian Urals, a medium sour crude, suitable for Cuba's ageing refineries.Cuba produces only 40 percent of its required fuel and relies on imports to sustain its energy grid. Experts estimate that the anticipated shipment could produce about 180,000 barrels of diesel, enough to meet Cuba's daily demand for nine or 10 days.The arrival of the tanker has been welcomed by Cubans, including Energy and Mines Minister Vicente de la O Levy, who expressed gratitude to the Russian government and people for their support. The energy crisis in Cuba has led to long blackouts and severe shortages of food and medicine.