1. Supply chain shortage posing real threat to global economy

Research from Bloomberg Economics shows that US supply shortages a just shy of a two-decade high, and quantifies what is being seen around the world with empty supermarket shelves, banked cargo ships and halted production of vehicles and technology products thanks to a shortage of microchips. According to the report: “Central banks, already retreating from their view that inflation is ‘transitory,’ may be forced to counter rising prices with earlier-than-expected interest-rate hikes. That poses new threats to an already stumbling recovery, and could take the air out of bubbly equity and property prices. Behind the logjams lies a mix of overloaded transportation networks, shortages of labor at key chokepoints, and demand in the U.S. that’s been bolstered by pandemic stimulus and focused more on goods than services.”

2. Leaked text message latest chapter in soured French-Australian relations

The diplomatic rift between France and Australia has taken yet another turn after Prime Minister Scott Morrison leaked a text message from French President Emmanuel Macron. The contents of the text message, which Macron sent to Morrison two days prior to the announcement of the AUKUS deal, was centred on whether he could expect good or bad news regarding the submarines. A close adviser to the French President told media on France on Tuesday that “Confidence has been completely shattered … Disclosing a text message exchange between heads of state or government is a pretty crude and unconventional act”.

3. Jeff Bezos pledges $2bn to fight climate change

One of the world’s richest individuals and founder of Amazon, Jeff Bezos has announced he will pledge $2bn in the fight against climate change, namely to help restore nature and transform global food systems. According to CNBC, “The funding, which will come from the Bezos Earth Fund, is part of the billionaire’s commitment to spend $10 billion on fighting climate change this decade”. “Nature is beautiful but it is also fragile,” Bezos told delegates at the COP26 climate conference on Tuesday. “Each year, forests and landscapes absorb 11 billion tons of CO2 from the atmosphere. As we destroy nature, we reverse this process … In too many parts of the world, nature is already flipping from a carbon sink to a carbon source. This is a profound danger to us all.”

4. RBA Governor says rate rise concerns justified, although the timeframe is an “overreaction”

After a sell-off that forced the yield on the bond to eight times above the Central Bank’s 0.1% target, leaving it little choice but to dump its yield curve control policy, which would have supressed the yield on the April 2024 bond in line with the cash rate forecast, the RBA has conceded interest rates could rise in late 2023. However, RBA Governor Philip Lowe said in a surprise press conference on Tuesday that market pricing for hikes in 2022 is “a complete overreaction”.

5. Four-year-old girl found after missing for over two weeks

Cleo Smith, the four-year-old girl who was reported missing from a remote campsite in WA more than a fortnight ago, has been found alive and well, according to police on Wednesday. “WA police said they had found Cleo in a house in Carnarvon about 1am on Wednesday and a local man had been taken into custody. A deputy commissioner, Col Blanch, said police had broken their way into the locked house and found the girl in one of the rooms,” The Guardian reports.