Global Markets: New records for fossil fuels

By Glen Hallick

Glacier Farm Media MarketsFarm – The following is a glance at the news moving markets in Canada and globally.

• Fossil fuel consumption and energy emissions in 2023 hit all-time highs worldwide, according to a report from the Statistical Review of World Energy released on Thursday. The report said global primary energy consumption reached a new record of 620 Exajoules while emissions exceeded 40 gigatonnes of carbon dioxide for the first time. Fossil fuel use increased by 1.5 per cent, making up 81.5 per cent of the overall energy mix.

• The Bank of England kept its main interest rate at 5.25 per cent on Thursday. This came the day after inflation in the United Kingdom fell to two per cent, which sparked hopes for a rate cut. The BoE’s Monetary Policy Committee voted seven to two in favour of a freeze. “We need to be sure that inflation will stay low and that’s why we’ve decided to hold rates at 5.25 per cent for now,” stated BoE Governor Andrew Bailey.

• Meanwhile, the Swiss National Bank opted for a second rate cut of 25 basis points on Thursday, which brought its key rate to 1.25 per cent. The SNB previously chopped 25 basis points off of it key rate in March. With turmoil throughout Europe, investors had been turning to the Swiss franc as a safe haven, which drove up its value. The rate cut saw the franc pull back.

• A strike at WestJet was averted on Wednesday as the airline and the union representing about 670 plane mechanics agreed to return to the bargaining table. After canceling 30 flights, WestJet approached the Canadian Industrial Relations Board requesting the labour dispute go to arbitration, which the latter denied at this time. The Aircraft Mechanics Fraternal Association rescinded its strike notice.