Worldwide stagflation

Prices for shipping containers, semiconductors and fertilizer have come down in recent months, potential signs of relief for US consumers as the cost of both producing and moving goods may be moderating. It would also be good news for the Federal Reserve as it seeks a soft landing, though on Tuesday Treasury Secretary Janet Yellen said she expects inflation to remain high for now. But for many other countries, the horizon remains much darker, according to World Bank President David Malpass. “The world economy is again in danger,” he said as the bank cut its forecast for economic expansion in 2022. Malpass warned that several years of above-average inflation and below-average growth—or stagflation—lie ahead, with potentially destabilizing consequences for the less wealthy economies of the world. —Margaret Sutherlin

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

New revelations of the extent of an alleged conspiracy to keep Donald Trump in power continue to pour forth ahead of the first public hearings of the Jan. 6 Congressional Select Committee. For a year, the panel has been investigating the deadly insurrection by Trump followers seeking to block the transfer of power to President Joe Biden. According to a new Washington Post report, a Trump campaign staffer was instructing fake Republican electors in Georgia to operate in “complete secrecy.” But almost a year and a half after the attack on the US Capitol, prosecutors in the sprawling criminal investigation, while leveling more seditious conspiracy charges, appear to have a long way to go.

Target cut its outlook Tuesday, saying it has way too much inventory. This fresh warning from the retailer should scare other retailers, Andrea Felsted writes in Bloomberg Opinion. Here’s your markets wrap.

The US Treasury stepped up financial sanctions on Russia by restricting investors from buying the country’s debt in the secondary market. The move almost brought trading activity in the instruments to a halt on Tuesday as investors scrambled to understand the new restrictions. Banks that have been trading Russian corporate and sovereign bonds—specifically JPMorgan and Goldman Sachs—have faced intense criticism for profiting on Russian debt while Vladimir Putin kills thousands of civilians in Ukraine. The Kremlin continues to scale up attacks in the northeastern and eastern part of the country, occupying more territory. As fighting has intensified, Ukrainian President Volodymyr Zelenskiy reiterated his call for more weapons.

A senior Chinese economist at a government-run research group called on authorities to seize Taiwan Semiconductor Manufacturing Co. (which is in Taiwan) if the US hits China with sanctions on par with those leveled against Russia. The comments are some of the most prominent so far showing how Taiwan’s chip industry is seen in Beijing as a key strategic asset.

When she announced her resignation from Meta, Sheryl Sandberg posted an essay celebrating her long partnership with Facebook and recounting her achievements there. She brought up “Lean In” and the company’s 3 billion users. But she barely alluded to her biggest contribution to the tech business.

More than 20 heads of government from Latin America and the Caribbean are expected in Los Angeles this week to participate in the 9th Summit of the Americas. While Ukraine is taking the bulk of US foreign policy attention, the US has plenty of problems in its backyard.

Americans looking for larger properties during the pandemic are moving to rural towns and suburbs—putting more people and buildings in areas with a high fire risk. No one wanted to listen when scientists warned of a future with catastrophic wildfires, but a new analysis shows just how right they were.

Venezuela has been known for years as an economic basket case, with hyperinflation that once neared 2 million percent a year. But there are signs an economic shift—maybe even a capitalist one—is underway in one Caracas neighborhood. While 90% of the country still lives in poverty, subsisting on as little as $30 a month, in Las Mercedes, the elite can buy Ferraris for $200,000, roulette wheels are spinning and new buildings are springing up everywhere.

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