Market Intelligence—16.01.24
Macroeconomics
Apart from the headlines that have dominated the news for months, the year has started relatively uneventfully.
Diplomacy is endeavouring to find viable ceasefires, or at least solutions that better protect the civilian population. To date, however, this has not met with success. Israel’s conflict in Gaza and Lebanon continues unabated. Houthi rebels are continuing their attacks on merchant shipping in the Red Sea, forcing more and more ships to be diverted and take the route around the Cape of Good Hope. It is estimated that goods worth more than $250 billion have had to take the longer route. In addition to the extra costs that will be incurred by carriers, the problem will also extend to the availability of equipment and capacity in ports in the foreseeable future. The medium and long-term consequences are growing worse with each passing day and are fuelling the rebels even more. Hope remains that the international community will provide further support to secure and maintain shipping traffic in the Red Sea.
