Creminelli Recalls Mini Parmesan Salami Stick Products

Oil Futures Settle Sharply Higher

Crude oil prices rose sharply on Tuesday, extending recent gains, after Saudi Arabia and the United Arab Emirates indicated that can barely increase oil production.

Libya and Ecuador flagged potential output cuts on political unrest and the United Arab Emirates’ Energy Minister said the nation has no spare capacity. The UAE Energy Minister said the country is producing near to the maximum production capacity based on its current OPEC+ production baseline (3,168 mbopd) which UAE is committed by until the end of the agreement.

The move by Western governments to explore ways to cap the price of Russian oil, hopes for improved demand for oil in China after the country halved the length of mandatory quarantine for inbound travelers contributed significantly to the jump in oil prices.

West Texas Intermediate crude oil futures for August ended higher by $2.19 or about 2% at $111.76 per barrel.

Brent crude settled at $117.98 a barrel today, gaining $2.89 or about 2.5%.

European Economics Preview: UK Inflation Data Due

Consumer and producer price figures from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK consumer and producer prices for May. Consumer price inflation is forecast to rise to 9.1 percent in May from 9.0 percent in April. Factory gate inflation is seen at 14.7 percent versus 14.0 percent in April.

In the meantime, unemployment data from Sweden and consumer confidence from Denmark are due.

At 3.00 am ET, the Turkish Statistical Institute releases consumer confidence survey results.

At 4.00 am ET, retail sales data is due from Poland. Economists forecast retail sales to grow 23.3 percent annually in May after rising 33.4 percent in April.

Half an hour later, the Office for National Statistics is slated to issue UK house price data.

At 8.30 am ET, the Czech National Bank announces the monetary policy decision. The bank is expected to lift its key rate to 6.75 percent from 5.75 percent.

German GfK Consumer Sentiment Hits New Record Low

Germany’s consumer confidence dropped to a new record low in July as consumers see the risk of the economy slipping to a recession, survey results from the market research group GfK showed on Tuesday.

The consumer confidence index fell to -27.4 in July from revised -26.2 in June. The score was forecast to fall to -27.6.

The ongoing war in Ukraine and disrupted supply chains are lifting energy and food prices in particular, and make the consumer climate gloomier than ever, Rolf Bürkl, GfK consumer expert said.

Bürkl said the European Central Bank should adopt appropriate monetary policy to curb inflation. At the same time, such measures should not push the ailing Germany economy into a recession, the expert added.

All the three components of the consumer confidence index weakened in June. The economic expectations index dropped 2.4 points to -11.7 in June.

Consumers see the risk of recession. Supply chain problems and the war dampen production and high inflation is weighing on private consumption.

The income expectations index declined more sharply by 9.8 points to -33.5 in June, the lowest score in almost 20 years.

Amid falling economic and income expectations, the propensity to buy slid 2.6 points to -13.7 in June. Households have to pay more for energy and food, leaving less financial resources for larger purchases.

The survey results are based on the responses of around 2,000 consumers, carried out on behalf of the EU Commission.

Australia Leading Index Growth Slows In May

Australia’s leading index growth slowed in May largely due to the deterioration in consumer sentiment, data released by Westpac showed on Wednesday. Nonetheless, the index signaled above trend growth for this year.

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, fell to 0.58 percent in May from 1.09 percent in April.

Despite the fall, the overall growth rate in the leading Index is still indicating above trend growth momentum heading into the three to nine month ‘window’.

The main components driving the improvement in the leading index over the first half of 2022 have been a lift in commodity prices in AUD terms, a widening yield spread, US industrial production and dwelling approvals. These were partially offset by sharp falls in sentiment and a sell-off in equity market.

Westpac said the consumer spending will continue to benefit from post-Covid reopening. But the decline in consumer confidence due to rising interest rate and falling house prices, will take its toll on spending later this year and into 2023.

Westpac Chief Economist Bill Evans said the Reserve Bank of Australia will decide to follow the 50 basis point rate increase in June with a further 50 basis point increase in July. Given the tight labor market and rising inflation further monetary tightening can be expected through 2022.

Creminelli Recalls Mini Parmesan Salami Stick Products

Salt Lake City, Utah-based Creminelli Fine Meats is recalling around 4,207 pounds of ready-to-eat or RTE parmesan salami sticks citing misbranding and an undeclared allergen, the U.S. Department of Agriculture’s Food Safety and Inspection Service or FSIS announced.

The recall involves 2.6-oz. plastic pouches containing “CREMINELLI FINE MEATS salami minis UNCURED ITALIAN SALAMI PARMESAN” with “BEST BY” dates from 06/18/22 through 12/09/22.

The RTE salami stick with parmesan items were packaged on various dates from October 26, 2021 through April 26, 2022. The products subject to recall bear establishment number “EST34644”. These items were shipped to retail locations in Arizona, California, Colorado, Florida, Georgia, Illinois, Massachusetts, and Utah, and sold through internet sales nationwide.

The product contains egg lysozyme, an egg white protein and known allergen, which is not declared on the final product label. The recall was initiated after the inspection personnel discovered the issue during a routine label verification review.

However, there have been no confirmed reports of adverse reactions due to consumption of these products.

FSIS is concerned that some product may be in consumers’ pantries, and urged them to throw the products away or return to the place of purchase.