Closing summary
Fears that the British economy is already in recession after a much bigger-than-expected decline in retail sales triggered heavy selling of the pound on international money markets to a fresh 37-year low against the dollar.
With average UK wages continuing to fall behind rising prices and the Bank of England expected to push up interest rates next week, sterling fell by more than 1% against the US currency to $1.135, its lowest since 1985.
On the 30th anniversary of Black Wednesday when the UK crashed out of the European exchange rate mechanism, the pound also hit a 17-month low against the euro, with €1 worth 87.66p.
A report from the World Bank added to the gloomy prognosis for the UK after it said rising interest rates could push the global economy into a recession next year, badly affecting nations like the UK that depend on revenues from trade.
The worsening global outlook came as the latest official data showed cash-strapped consumers cut back on spending by more than expected in August, when retail sales volumes in Great Britain fell by 1.6%. Economists had predicted a more modest fall of 0.5%.
The fall in sales last month was broad based, with petrol stations, supermarkets, clothing and furniture stores all experiencing a drop, the Office for National Statistics said.
FedEx shares are down nearly a quarter after the global delivery company issued a major profit warning last night, adding to worries about the US economy. The share price fell 23.7%, contributing to a sell-off on Wall Street.
Over here, the FTSE 100 index in London was trading nearly 30 points lower at 7,252, a 0.4% drop, by mid-afternoon. Germany’s Dax, France’s CAC and Italy’s FTSE MiB were down between 1.2% and 1.7%.
Mainline train stations will stay open in London throughout the night in coming days as transport authorities prepare to look after the huge number of people expected to pay their respects at Queen Elizabeth II’s state funeral.
Restaurants and toilet facilities will stay open, with special “welfare trains” on platforms to seat vulnerable passengers who may have long waits to travel.
The limited additional night trains promised by operators for the lying in state and funeral would mainly serve destinations within the M25, Network Rail confirmed.
Our other stories today:
Thank you very much for reading. Have a good weekend. We’ll be back next week. Take care – JK
The University of Michigan’s consumer sentiment survey for September is a bit weaker than expected, and inflation expectations have retreated.
🇺🇸 *MICHIGAN PRELIM. SEPT. CONSUMER SENTIMENT AT 59.5; EST. 60
— Christophe Barraud🛢🐳 (@C_Barraud) September 16, 2022
*MICHIGAN 1-YR INFLATION EXPECTATIONS DROP TO 4.6% (lowest since Sep. 2021⚠) FROM 4.8%
*MICHIGAN 5-10 YR INFLATION EXPECTATIONS FALL TO 2.8% (lowest since July 2021⚠) FROM 2.9%
University of Michigan’s consumer sentiment report for September came out lower than expected at 59.5. pic.twitter.com/SqbiYEdkOf
— Yahoo Finance (@YahooFinance) September 16, 2022
FedEx shares tumble in Wall Street sell-off
FedEx shares are down nearly a quarter after the global delivery company issued a major profit warning last night, adding to worries about the US economy.
The share price fell 23.7%, contributing to a sell-off on Wall Street. The Dow Jones fell more than 1% to 30,646, while the S&P 50 lost 1.2% to 3,854 and the tech-heavy Nasdaq slid 1.5% to 11,377.
Fedex warned on first-quarter profits and withdrew its 2023 forecast after a slump in package shipping volumes. It said it would shut some offices, freeze hiring and park aircraft to cut costs.
Dollar buyers of London property pay a lot less than a few years ago because of sterling’s weakness, according to the property firm Knight Frank.
While the pound has been one of the worse-performing major currencies this year, the dollar has grown in strength versus a series of other currencies, hitting parity with the euro in recent weeks. In addition to the US economy proving resilient and paving the way for more aggressive rate hikes, safe-haven investors have also been busy buying the greenback.
As financial markets decide what Liz Truss ultimately means for the UK, a weak pound will act as a shock absorber for some parts of the economy, supporting the share price of London-based companies who are paid in dollars for example. The same is true of the residential property market in London’s prime postcodes.
The exchange rate fell from US$1.71 at the start of July 2014 to US$1.15 in early September this year, which highlights the size of the relative discount for US buyers and those denominated in pegged currencies such as the Hong Kong Dollar and currencies in many parts in the Middle East.
It is only part of the story though, with property prices also having fallen due to political uncertainty, tax hikes and international travel restrictions. Average prices in prime central London fell 13% over the eight-year period.
When you combine the effect of falling property prices and a weaker pound, the discounts on offer can reach surprisingly high levels.
The largest discount can be found in Knightsbridge, an area of the capital where prices are still 24% below their 2014 level. Combined with the currency movement, a US buyer would have benefitted from an effective discount of 49% at the start of this month compared to July 2014.
Buying a £5m property in Knightsbridge would have previously required US$8.6m, a figure that had shrunk to US$4.4m last week.
Discounts are smaller in areas including Islington and Canary Wharf as prices have not fallen by as much over the period. For similar reasons, flats provide a steeper discount than houses in prime central London.
The discounts have grown wider at a time when international travel is approaching its pre-pandemic levels from many areas.
Russia's central bank cuts rates to 7.5%
Russia’s central bank has cut its key interest rate by 50 basis points to 7.5%.
Inflation is forecast to ease, giving policymakers some wriggle room to provide cheaper lending to limit an economic slump. However, the bank signalled that this may be the last rate cut for a while.
It is the fifth rate cut this year. Immediately after Moscow’s invasion on 24 February, the central bank hiked its key rate to 20% from 9.% to mitigate risks to financial stability. The rouble seemed unfazed by today’s move, hovering near 6 against the dollar.
Russian inflation was at 14.1% on 9 September and is on track to finish this year between 11% and 13%, and slow to 5% to 7% next year, the central bank said.
It didn’t give any forward-looking rate guidance, saying that the inflation expectations of households and businesses remained elevated. This suggests the likelihood of another rate cut has declined.
Evgeny Suvorov, economist at CentroCreditBank, told Reuters:
There is no direct signal in today’s press release. And this is a clear indication that the rate-cutting cycle may be over.
Updated
Pound tanks on 30th anniversary of Black Wednesday
Here’s our full story on the pound, which is tanking on the 30th anniversary of Black Wednesday, when the UK crashed out of the European exchange rate mechanism.
The pound sank to a fresh 37-year low against the dollar on Friday after weaker than expected retail sales raised fears that the British economy is already in recession, writes the Observer’s economics editor Phillip Inman.
Sterling fell by more than 1% against the currency to $1.1351, its lowest since 1985, partly reflecting broader dollar strength as well as specific concerns about the outlook for Britain. On the 30th anniversary of Black Wednesday when the UK crashed out of the European exchange rate mechanism, the pound also hit a 17-month low against the euro, with €1 worth 87.66p.
On Black Wednesday, sterling slumped 4.3% to finish the day at $1.778.
It came as the latest official data showed cash-strapped consumers cut back on spending by more than expected in August, when retail sales volumes in Great Britain fell by 1.6%. Economists had predicted a more modest fall of 0.5%.
The sharp decline in sales came after an upwardly revised 0.4% increase in July that appears to be a temporary bounceback after the Queen’s platinum jubilee celebrations in June.
Updated
Small businesses in particular are struggling – here are some voices.
Barry Whitehouse, owner of the Banbury-based art shop, The Artery, says:
Sales in recent months have been the lowest we have seen in 12 years. Online sales have dried up, sales in the shop are much quieter, and we are seeing weekly takings across both online and in-shop at levels at least 50% lower than before the pandemic. Customer numbers are down around 70% each week.
We are reaching the point where we can no longer cover our overheads, and wages seem like a fantasy rather than a reality. We are seeing some product prices rise almost every few months, and as we have very low margins, we have no choice but to pass the increases on. We are doing all we can to hold on in the hope things will improve, and we are so thankful for our regular customers and students who are choosing to support real life independents instead of the faceless online giants.
We have seen some available grants but they were match funded. We couldn’t apply as we have no money left to match. If we had the money to match, we wouldn’t need the grant. It’s the ultimate Catch 22. How long I have left in business is anyone’s guess.
Meanwhile, Sheju John, founder of the kids’ book publisher Parakeet Books, says:
Children’s book sales are down everywhere but it’s particularly hard on micropublishers like us where every penny counts. At the moment, the cost of living is hard for everyone and especially horrendous for parents. So extra money for books is bound to be tight. We would welcome a Government grant for small, social change-based companies.
And Richard Parson at the artisan fudge retailer, Fudge Kitchen, made this plea to the government:
To help the retail sector, the government needs to redress and restructure the way the entire commercial property sector operates. For long-term sustainability, landlords and tenants need to work together and be tied equitably in both the companies’ good and lean times. Upward-only rent reviews are archaic and damaging. Formulas for turnover rents and shared structural responsibilities have to be the way forward.
Daniel Kostecki, a senior market analyst at the investment company Conotoxia, explains why the pound is at its weakest level since the 1980s. It fell more than 1% to $1.1351 earlier, and is now trading at $1.1403, down 0.5% against the dollar.
First, Brexit, then the pandemic, and now an energy crisis, inflation, and a collapse in consumer demand, are all events that might not only have influenced the weakness of the British currency but also have contributed to a gradual loss of confidence of foreign investors. It seems that the pound is slowly changing its positions from a globally respected currency to one of an emerging country.
Today’s retail sales data, which fell for the first time since July 2021, may have led to a drop in the sterling-dollar rate to its lowest level since 1985. Investors may be contemplating severe problems for the British economy and public in the coming months, potentially preferring to pull out of sterling investments.
Eurozone inflation confirmed at 9.1% in August
The euro area’s annual inflation rate has come in as expected at 9.1% in August, up from 8.9% in July. This is more than three times the rate in August 2021.
These final figures are published by Eurostat, the statistical office of the European Union.
The lowest annual rates were registered in France (6.6%), Malta (7.0%) and Finland (7.9%). The highest annual rates were recorded in Estonia (25.2%), Latvia (21.4%) and Lithuania (21.1%).
Compared with July, annual inflation fell in 12 member states and rose in 15. In August, the highest contribution to the eurozone inflation rate came from energy (+3.95 percentage points), followed by food, alcohol & tobacco (+2.25 pp), services (+1.62 pp) and non-energy industrial goods (+1.33 pp).
Eurostat inflation release has Eurozone core inflation (overall index excluding energy, food, alcohol & tobacco) at 4.3%. Core inflation in the UK (6.3%) and Ireland (5.8%) remained significantly higher in August. pic.twitter.com/eJfVVBSmCg
— Mark Magill (@MarkMagill1982) September 16, 2022
The job vacancy rate in the currency bloc ticked up to 3.2% from 3.1%, separate figures showed.
England and Wales company insolvencies 42% above pre-pandemic level
As the economic outlook for the UK darkens, the number of companies in England and Wales which declared insolvency last month was 42% higher than before the pandemic, following the end of temporary business loans and forbearance by courts and creditors.
The number of registered company insolvencies in August was 1,933, which was 43% higher than in August 2021, according to figures from the Insolvency Service.
The increase has been driven by a rise in creditors’ voluntary liquidations (CVLs), where a company and its shareholders decide to crease trading, rather than compulsory liquidations.
CVLs were 33% higher than in August 2021 and 73% higher than in August 2019. The number of administrations, at 116, was more than twice as high as a year ago.
Jeremy Whiteson, partner in Fladgate’s restructuring and insolvency practice, notes that insolvencies rose 6% from July, while the July figure was 7% higher than in June.
As government imposed restrictions on creditor remedies during the pandemic period were all removed by March 2022, an increase in insolvency figures around that date was expected- and occurred. However, recent months, up to the June figure, had shown a month on month decline. It will be important to see how the figures run for coming months. Are the July and August figures a blip- running against trend- or do they show a change in the weather for businesses?
It would be unsurprising if the situation was worsening for businesses and this was not merely a one month blip. High fuel prices, inflation, labour shortages, post Brexit difficulties with international shipping, uncertainty in capital markets, raising interest rates and geo-political uncertainty all pose difficulties for businesses.
He explains the different procedures:
The increase in overall figures was largely caused by an increase in creditors voluntary liquidations (CVLs). This is a procedure generally used for companies with no ongoing business to dispose of remaining assets, distribute available funds to creditors and dispose of the corporate entity.
The numbers of administrations and company voluntary arrangements (CVAs) – procedures more likely to be used to rescue a business – still show a significant decline from pre-pandemic figures. There were 116 administrations and 13 CVAs in August 2022- 34%% and 57% lower than August 2019 respectively.
However, for the first time since the pandemic there was a month on month increase in the administration and CVA figures (43% for administrations and 160% for CVAs). That suggests that more live businesses are reaching for insolvency and restructuring protection. In other words the impact of financial difficulties is rising higher up the corporate ladder – from redundant corporate shells (who would look for liquidations) to businesses with assets, employees and trade worth saving.
Gas prices fall on stable Norwegian flows, storage build-up
British and Dutch gas prices have fallen today, as Norwegian gas flows to the rest of Europe are stable, and storage levels have gone up, easing fears of an energy crunch and raising hopes that mandatory rationing this winter can be avoided.
The Dutch October contract, the European benchmark, fell €12.15 to €200 per megawatt hour, a 5.7% drop, while the contract for next-day delivery slid 13% to €176 per megawatt hour. The British contract for weekend delivery fell 45p to £265 per therm, a 14.5% decline.
Refinitiv analysts said the rise of liquefied natural gas imports at the Dutch port of Eemshaven were another factor.
European gas inventories are almost 85% full, exceeding the EU’s target. Eastbound natural gas flows through the Yamal-Europe pipeline to Poland from Germany were steady, while the Nord Stream 1 pipeline from Russia remains closed.
Analysts at Fitch Solutions said:
Continued increases to storage levels across the EU are expected, markets have increased confidence that mandatory rationing this winter will not be necessary should it prove to be a normal winter of consumption.
The European Commission published proposals on Wednesday to raise about €140bn (£121bn) by imposing windfall taxes on energy companies’ “abnormally high profits” and redirecting proceeds to households and businesses struggling with soaring bills. The EU executive’s plan did not include an earlier idea to cap Russian gas prices.
Announcing long-awaited emergency measures to tackle the rising price of electricity, the EU official in charge of the green transition, Frans Timmermans declared:
The era of cheap fossil fuels is over. And the faster we move to cheap, clean and homegrown renewables, the sooner we will be immune to Russia’s energy blackmail.
European car sales rise in August
European car sales rose in August, following 13 months of declines, according to industry figures.
The European new car market finally returned to growth with a 4.4% increase year-on-year, according to the European Automobile Manufacturers’ Association (ACEA), which represents Europe’s 15 major car, truck, van and bus makers.
However – with 650,305 units registered in August – this result remains far below pre-pandemic levels. All the key EU markets contributed to the region’s growth, with solid gains seen in Italy (+9.9%), Spain (+9.1%), France (+3.8%) and Germany (+3.0%).
Eight months into 2022, overall volumes are down 11.9% for the year so far to reach nearly 6 million new passenger cars sold. The four key markets have all faced losses so far.
In July 2022, new #car registrations in #EU decreased again (-10.4%), despite an already low base of comparison caused by the ongoing #semiconductor shortage, chart @ACEA_auto https://t.co/nz6KzIUymC pic.twitter.com/BmVPwj6G0D
— ACEMAXX ANALYTICS (@acemaxx) September 16, 2022
JPMorgan economist Allan Monks has crunched the British retail sales data:
The data are notoriously volatile, but this is an unexpected move that leaves the level of spending at its lowest since the early 2021 lockdown, with sales falling at a 4.4% annualised pace on a 3m/3m basis.
While some of the drop retail this year has been about a rotation towards service, the new low in these latest data - which are now below levels in the fourth quarter of 2019 - provides clearer evidence of a shift in overall consumer spending and raises the risk that GDP fell in the third quarter. The timely data on card spending have held up better through to early September. But given this measures nominal spending, and the pace of inflation accelerated through the summer, this would still point to drop off in real terms.
There are several strong arguments for the MPC [monetary policy committee] to step up the pace of tightening to 75bps next week, notably surprises in the wage and price data together with a large fiscal easing. But yesterday’s inflation expectations data and today’s sharp decline in retail sales will provide grounds for a greater element of caution from the MPC, and we now see the call as very close. We will finalise a forecast in a preview later today.
Walid Koudmani, chief market analyst at the financial brokerage XTB, says:
The situation with the pound continues to be concerning after it reached a 37 year low against the dollar with the sterling-dollar pair dropping around 1% and reaching a low of $1.135 before rebounding slightly.
While dollar strength is certainly playing into it with the Fed taking significant action to contain inflation, the precarious situation the UK economy finds itself in, further highlighted by today’s retail sales report, is not helping either. The Bank of England has a tough job ahead of it as it must strike the balance between managing inflation, supporting the currency while simultaneously not negatively affecting the overall economy further.
Dollar's gone bananas
— Katie Martin (@katie_martin_fx) September 16, 2022
Sterling down at $1.1360
Euro at $0.9950 pic.twitter.com/6HYcsyAGJp
The 1.6% fall in British retail sales last month was more than three times as big as economists had expected, and was the worst decline since December 2021. It was just the latest bit of bad news for sterling.
John Hardy, head of currency strategy at Saxobank, told Reuters:
The grinding backdrop of everything that’s going on is weighing on sterling, with the UK running these massive external deficits and the risks around the new prime minister’s policies adding to that.
The new prime minister Liz Truss last week announced a cap on soaring energy bills for two years, as part of measures that are likely to cost the UK more than £100bn.
Sterling falls to new 37-year low
Sterling has fallen to a new 37-year low against the dollar, as a sharp drop in British retail sales heightened recession fears.
The pound fell more than 1% to $1.1350, and has lost 0.5% against the euro to €1.1407.
Another factor is dollar strength – the greenback has been strong against a number of major currencies as the US Federal Reserve has aggressively hiked interest rates, thereby offering better returns for investors. The dollar index, which measures it against a basket of currencies, rose as much as 0.5% this morning.
The Fed is expected to raise interest rates by a further 75 basis points at next Wednesday’s meeting, a day before the Bank of England is set to hike rates by 50 basis points.
Updated
Germany puts Rosneft subsidiary under state control
Germany has taken the German subsidiary of the Russian oil giant Rosneft under state control, putting three refineries into a trusteeship ahead of a partial European embargo on Russian oil at the end of the year, reports Philip Oltermann in Berlin.
The federal network regulator will become the temporary trust manager of Rosneft Germany and its share of refineries in Schwedt, near Berlin, in Karlsruhe and in Vohburg, Bavaria, Germany’s ministry for economic affairs announced on Friday.
Rosneft Germany is the country’s largest single oil processing company, accounting for about 12% of its capacity for processing crude oil.
The German chancellor, Olaf Scholz, will on Friday announce further details of a package to support the Schwedt refinery and “ensure that the supply of oil via alternative paths can be secured”, the announcement said.
The refinery on the Polish border, crucial for supplying petrol to the Berlin-Brandenburg region, has until now been reliant on supplies via the Soviet-era Druzhba (“friendship”) pipeline, which takes Russian oil across Ukraine to Europe.
European shares fall on recession fears
UK and European shares are falling, following a sharp drop in British retail sales and a global recession warning from the World Bank.
The FTSE 100 index in London has lost 31 points, or 0.4%, to 7,251 in early trading, while Germany’s Dax is down 1.4%, France’s CAC has slid 1% and Italy’s FTSE MiB is trading 1.6% lower.
Retail sales in Britain fell much more than expected last month, by 1.6%, in another sign that the economy is sliding into recession as the cost of living crisis – high inflation and falling real wages – bites. Sales volumes fell across fashion stores, supermarkets and department stores – with alcohol and tobacco one of few categories to see growth.
Fashion retailers including Asos and Primark owner Associated British Foods, along with the online grocer Ocado, have warned on their profits in recent days.
Updated
“Shoppers are simply buying less to offset price increases,” says Lisa Hooker, industry leader for consumer markets at PwC. She explains:
For the first time, grocery sales volumes, taking out the impact of the inflation, actually fell below pre-pandemic levels, showing that shoppers are wasting less and being forced to be more careful with what they put in their trolleys.
Other categories like fashion also fell below pre-pandemic levels, despite its resurgence earlier in the summer as consumers rushed to buy new outfits for the workplace and celebrations and events postponed from the pandemic.
As we approach the critical Golden Quarter in the run up to Christmas, retailers will be looking with anticipation to the outcome of next week’s mini-budget. The confirmation of an energy price cap and possibility of tax cuts may boost wavering consumer spending, but businesses will also be looking for help to alleviate soaring utility costs of their own. That’s in addition to the input cost inflation and wage rises that they are already having to contend with.
Longer term, the high street will also be looking for signs of reform of business rates, with index-linking likely to offset any revaluation benefit, and adding to costs from next year.
Retail Sales in the United Kingdom decreased 1.60 percent in August of 2022 over the previous month. https://t.co/EwoFoJWCbm pic.twitter.com/mi5PXddhIt
— Trading Economics (@tEconomics) September 16, 2022
The sharp drop in British retail sales suggests that “the economy is already in recession,” says Olivia Cross, assistant economist at Capital Economics.
Retail sales will probably continue to struggle as the cost of living crisis hits harder in the coming months. But nonetheless the Bank of England will still have to raise interest rates aggressively.
The fall in retail sales in August more than reverses the upwardly revised 0.4% monthly rise in July. Sales volumes fell in every major category and the ONS reported that high prices were prompting households to reign in their spending. And this sits comfortably with the fall in consumer confidence to its lowest level on record in August. For example, fuel sales fell 1.7% despite a sharp 6.2% decline in fuel prices in August.
With CPI inflation yet to peak, it will continue to squeeze real incomes and weigh on consumer spending in the coming months. That said, the potentially huge fiscal expansion from the government’s Energy Price Guarantee will offer substantial support to households and consumer spending further ahead.
We now expect that the recession will be smaller and shorter than we did before, which is one reason why we expect that the Bank of England will need to raise interest rates further than we had been expecting to a peak of 4.0% (previously 3.0%, consensus 2.5%).
Updated
The World Bank also warned that the global core inflation rate, excluding energy, could remain at about 5% next year, nearly double the five-year average before the pandemic, unless supply disruptions and labour market pressures subside.
To drive inflation lower, central banks may need to raise interest rates by an additional 2 percentage points, on top of the two-point increase already seen, it said. But an increase of that magnitude, coupled with financial market stress, would slow global GDP growth to 0.5% in 2023, or a 0.4% contraction in per capita terms, which would meet the technical definition of a global recession.
Malpass urged policymakers to shift their focus from reducing consumption to boosting production, including efforts to generate additional investment and productivity gains.
Previous recessions illustrated the risk of allowing inflation to stay elevated for long while growth is weak, the Bank said, noting that the 1982 recession triggered more than 40 debt crises and ushered in a decade of lost growth in many developing economies.
World Bank vice president Ayhan Kose said the recent tightening of monetary and fiscal policies would help tame inflation, but because this is happening simultaneously in several countries, this could worsen the global growth slowdown.
The report suggested that central banks could combat inflation without triggering a global recession by communicating their policy decisions clearly, and also called for credible medium-term fiscal plans and more targeted relief for vulnerable households.
Introduction: British retail sales fall sharply; World Bank warns of global recession
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
Retail sales volumes in Great Britain slumped by 1.6% in August from July – much worse than expected.
Economists had expected a 0.5% drop. The sharp decline came after an upwardly revised 0.4% rise in July.
The Office for National Statistics, which released the figures, said all main sectors (food stores, non-food stores, online retail, and fuel) fell over the month; this last happened in July 2021, when all legal Covid restrictions on hospitality were lifted and people headed out to bars and restaurants.
Sales at supermarkets and other food stores were down 0.8% in August, which leaves them 1.4% below their pre-pandemic levels in February 2020. However, alcohol and tobacco sales rose, by 6.3%, as people sought relief from the cost of living crisis. Petrol and diesel sales fell 1.7%, despite a fall in prices.
Sales at department stores fell by 2.7%, while household goods stores posted a 1.1% fall, mainly because of declines in furniture and lighting stores. Feedback from retailers suggests that consumers are cutting back on spending because of increased prices and affordability concerns.
At clothing stores, sales volumes fell by 0.6% in August and were 5.7% below their February 2020 levels.
The proportion of retail sales online fell to 25.7% from 26.3% in July; but it remains significantly above pre-coronavirus levels, when it was 19.8%.
The world looks to be edging toward a global recession as central banks are forced to hike interest rates to fight high inflation, the World Bank has warned.
The world’s three largest economies - the United States, China and the eurozone - have been slowing sharply, and even a “moderate hit to the global economy over the next year could tip it into recession,” the bank said in a new study.
It said the world economy was now in its steepest slowdown following a post-recession recovery since 1970, and consumer confidence had already fallen more sharply than in the run-up to previous global recessions.
Expressing concerns that these trends would persist, with damaging consequences for emerging market and developing economies, World Bank President David Malpass said:
Global growth is slowing sharply, with further slowing likely as more countries fall into recession.
The Agenda
10am BST: Eurozone inflation for August, final estimate (forecast: 9.1%)
10am BST: Italy inflation for August, final estimate (forecast: 8.4%)
3pm BST: US Michigan consumer sentiment for August
Updated
