Summary
Time for a recap...
Fears of a global recession are sweeping markets again, driving oil down to its pre-Ukraine war levels.
Stocks have tumbled across Europe, as soaring inflation puts pressure on central bankers to raise interest rate even more aggressively. With the US dollar in demand, the pound has sunk below $1.18 for the first time since March 2020, early in the pandemic.
The FTSE 100 is down 110 points, or 1.5%, in late trading, while fears that Mario Draghi’s government could collapse have hit stocks hard in Milan.
The EU added to the gloom, slashing its growth forecasts and predicting that inflation will be even steeper than feared.
And with the boss of Shell warning of the possibility of fuel rationing this winter, the next few months look increasingly troubled.
Barratt, the UK’s biggest housebuilder, is handing all its staff below senior management a £1,000 payment to help them cope with the cost of living squeeze, as well as a 5% pay rise.
Here are the rest of today’s main stories:
Updated
Federal Reserve policymaker Chris Waller has signalled that he favours raising US interest rates by 75 basis points this month - matching June’s hike, which was the largest since 1994.
But Waller isn’t ruling out a 100bp (or 1%) rise, saying that upcoming retail sales and housing data will show just how strong the economy is.
Fed governor Chris Waller says 75bps is his base case for the July policy meeting, but leaves the door open for a 100bp hike. "We have important data releases on retail sales and housing coming in before the July meeting," he says https://t.co/3uk5NPsmPi pic.twitter.com/gjVHCUci0I
— Colby Smith (@colbyLsmith) July 14, 2022
Fed Governor Waller is inclined to stick with a 75bps rate hike in July, UNLESS the retail sales and housing data between now and then comes in hot. Tomorrow may be the most important retail sales number in a long while.https://t.co/6fNr0quVU5 pic.twitter.com/6beT53BGi8
— Neil Irwin (@Neil_Irwin) July 14, 2022
