La Palma Volcano Eruption Destroys Buildings, Forces Evacuations in Canary Islands

Residents of the island of La Palma in the Canary Islands have been dealing with the eruption of the Cumbre Vieja Volcano, its first eruption since 1971.

While no deaths have been reported as a result of the eruption, more than 5000 residents have been evacuated as 600 buildings have so far been destroyed since the eruption started on September 19. The lava flow reached the shore on September 28.

Spain’s government, which controls the Canary Islands, has provided aid and assistance to the island.

 

Rising Prices Raise Inflation Concerns

The Federal Reserve reported that the personal consumption expenditure index (PCE), which measures the prices of consumer goods minus food and energy, rose at a 3.1% annualized rate in April, an increase from 1.9% in March. This was higher than the expected 2.9% increase.

If one were to include food and energy prices, inflation rose to 3.6% in April, up from 2.4% in Match.

The Federal Reserve has tried to allay fears of rising inflation, blaming it on supply-chain bottlenecks and the large fiscal stimulus, which they believe are temporary factors. In addition, the inflation is starting from a relatively low base line, as price increases were low during the coronavirus lockdown and related economic downturn.

The Biden administration, which has proposed trillions in additional spending, has signaled they believe that they can continue the large amounts of fiscal stimulus without drastically raising inflation. Republicans have countered that the additional money pumped into the economy could lead to even higher prices.

The US is not alone in facing inflation risk. Germany reported a 2.4% inflation rate for May. Spain also experienced the same inflation rate for May.

Markets overall have responded negatively to the news of increased inflation. While US markets have stabilized in the past few days, increased volatility in equity markets worldwide have continued. Cryptocurrency markets have also seen sharp declines from their previous highs, though other factors besides inflation worries are likely at play.

 

Coronavirus Cases Trending Down in US, Reemerge in Other Countries

Global coronavirus cases have topped 25 million worldwide as countries around the world struggle to contain the outbreak which began late last year in Hubei Province, China, with worldwide deaths currently numbered at 843,000. France and Spain are among the countries to report a resurgence in their COVID-19 numbers, with the latter being one of the centers of the outbreak when it began its worldwide spread in early 2020.

The United States, the worldwide leader in coronavirus cases and deaths, has seen some encouraging signs as the summer nears its end. New York and New Jersey continue to have low numbers of cases and deaths after suffering at the start of the pandemic in the US, and the later hotspots of Texas, Florida, and Arizona have seen their case and death numbers drop off drastically since their peak in July. However, other areas of the country continue to suffer outbreaks, often linked to mass gatherings such as parties. Colleges and universities have clamped down on such gatherings, with some deciding to cancel in-person classes after attempting to reopen for the semester.

Texas, Florida, California Emerge as Coronavirus Hotspots

Another crop of states has emerged as the next coronavirus hotspots in the United States, with Texas, Florida, and California among those seeing a large increase in COVID-19 cases and related deaths.

The previous hotspots, New York, New Jersey, and Michigan, have not seen large jumps since the major outbreak at the pandemic’s onset in the US in March and April. Fortunately none of the states currently experiencing a large uptick in cases have seen the death tolls seen in the worst of the crisis in New York and New Jersey, but a sharp increase of deaths has occurred and expected to continue.

Total case numbers in California stand at 493,588, in Florida 470,386, in Texas 420,946, and in New York 415,014. The nationwide lethality rate average is 3.2%, ranging as high as 8.7% in New York to 0.6% in Alaska.

As for the economy, the US gross domestic product (GDP) contracted at a 32.9% annualized rate in the second quarter, a massive decline. Unemployment claims also jumped in the past week, showing that the job market continues to be weak as businesses struggle with restrictions and declining customer purchases.

Meanwhile coronavirus cases have risen in other countries in the past few weeks. Spain, one of the early centers of the coronavirus outbreak in Europe, has seen a sharp uptick in cases, which some have blamed on increased travel and beach parties. Brazil, the country with the second most cases and deaths, has also struggled to control the virus. Brazil currently has had just under 2.7 million cases, compared to the US’s 4.7 million, or 12,536 cases per million versus 14,120 cases per million respectively.

Coronavirus Pandemic Infects the World

The United States, according to official numbers, leads the world in coronavirus disease (officially named COVID-19) cases at over 186,000 confirmed infections. China, the origin country of the outbreak, reports just under 82,000 cases, though given the country’s central role in the virus’s original spread and subsequent transmission as well as its much larger population, that number likely significantly underestimates the number of infected.

Countries with a higher per capita rate of infection than the US include Spain and Italy, which also have had higher mortality rates (~10%). The US, in contrast, has had a mortality rate of around 2%. The true mortality rate of those infected is likely lower than these reported numbers, as it only takes into account confirmed cases. Many coronavirus cases are asymptomatic or only show mild symptoms.

Most states in the US have issued “stay-at-home” orders, which only allow limited travel to essential work functions or for shopping. The New York metropolitan area has been especially hit hard, with local morgues running out of room for the dead and refrigerated truck being brought into service as temporary morgues.

China has begun to lift restrictions on Wuhan, the city in which the virus originated (likely at a wet market in which live animals and meat are sold). The country has come under international criticism for its handling of the disease as its government worked to silence the voices of those raising concerns of the virus when it first appeared late last year. The most visible whistleblower, Li Wenliang, died after raising the alarm on the virus. The Chinese government had targeted Li in December 2019, accusing him of “spreading rumors.”

Separatist Movements Face Defeats in Spain, Iraq

Separatist movements in Spain and Iraq begun actions over the past two months in attempts to achieve independence from their countries, though both are strongly opposed by the countries, leading to confrontation.

In Spain, Catalonian separatists pushed for a referendum asking whether the region, the wealthiest in Spain, should secede and become independent. The referendum as condemned as illegal by the Spanish government and boycotted by most pro-union people in the region. Because of this, the independence option was supported by just over 92% of the vote, but with only just over turnout. In addition, there were outbreaks of violence between Spanish police forces and pro-independence supporters during the vote.

Ignoring Spanish condemnations and threats to directly rule the region, Catalan leadership, led by pro-independence parties, recognized the results and declared independence on October 27, only to be taken over by the Spanish government shortly after with little resistance. Carles Puigdemont has left Spain for Belgium (though he claims he is not seeking asylum) and has called on Catalonians to accept the result of snap elections to replace the ousted Catalonian parliament on December 21.

In Iraq, the Kurdish referendum passed with nearly 93% of the vote, with nearly 73% turning out to vote. The result led to Iraq’s military pushing into Kurdish held land, taking back territory held since Kurdish forces took the land from the Islamic State. Iraqi forces have taken over border crossings between Iraqi Kurdistan and Turkey and Syria, and have taken back the city of Kirkuk.