Summary
A quick round-up.
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Global stock markets are on track for their worst week since 2020, as fears of a global downturn intensify. World shares have lost around 5.5% so far this week, as a succession of central banks have tightened monetary policy.
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The Bank of England’s chief economist, Huw Pill, has defended the BoE’s failure to better forecast inflation -- blaming unexpected shocks such as the Ukraine war.
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Supermarket chain Tesco has reported that shoppers are changing their behaviour, as customers face ‘unprecedented’ cost of living pressures.
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The cost of living crisis is damaging many people’s physical and mental health, as the prices of necessities continue to soar, a survey found.
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Gatwick airport is reduce its summer capacity to ward off potential chaos, after dozens of last-minute cancellations wrecked the travel plans of holidaymakers over the platinum jubilee and half-term holiday.
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M&C Saatchi has withdrawn its support for a £310m takeover bid from the digital marketing group Next Fifteen, saying it no longer regarded the terms as “fair and reasonable” amid pressure from another bidder.
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Retailers across the fitting-room-free world of fast fashion are processing a deluge of unwanted items, as the cost of living squeeze leads to more customers returning clothes.
- Boohoo will be challenged by campaigners over paying “very low” prices to suppliers and a lack of compensation for underpaid workers at UK factories making its clothing.
Thc chances of Britain heading into a recession over the next year or two have increased amid soaring inflation due to the country’s vulnerability to external shocks, J.P.Morgan economists have warned.
Reuters has the details:
“If the (U.S. Federal Reserve) engineers a sharp growth slowdown or recession, this would spill over to the UK and, combined with a tightening in domestic financial conditions, likely produce a UK recession,” JPM said, adding that:
“... given the nature of the UK economy, we see high vulnerability to external shocks beyond the near term and see increasing chances of a recession over the next one to two years.”
