Nordea with the note:
We warned a couple of months back how rising food prices risked fueling unrest in Emerging Markets, and it now seems as if several political triggers made our projection come true. South Africa, Cuba and Columbia (in May/June) are just a few examples of recent politically triggered protests that have likely been accelerated by the poverty stemming from the cocktail of high unemployment and rapidly rising food prices. We know that it is an oversimplification to point to food prices as the underlying reason for political unrest in Emerging Markets, but it is simply easier to mobilize the masses, when food prices are rising fast.
The recent resurgence of the Taliban in Afghanistan has likely also been accelerated by rising food prices as the Taliban controls large parts of the Afghani supply chain making it easier to recruit when prices are high. This is the first test of Bidens resiliency as it coincides with the American withdrawal strategy. Will “Bombing Biden” start re-thinking the withdrawal? We sadly think so.
