The UK could be plunged into a recession as runaway inflation threatens to destroy economic growth.

KPMG has become the latest organization to sound the alarm, saying there is a roughly 50% chance Britain will slip into a “mild recession”.

He warned that the UK was particularly vulnerable to a downturn if a Russian gas supply cut caused a contraction in the eurozone economy or if aggressive interest rate hikes in the US there. triggered a recession.

KPMG predicts the UK economy will slow to 3.2% this year, from 7.1% in 2021, before coming to a halt at almost 0.7% next year.

5 things to start your day

1) The world is at the “tipping point” of permanently high prices Inflation risks becoming entrenched in major economies and difficult to control, warns Bank for International Settlements

2) French energy giants are asking households to ration supplies ahead of looming winter shortage Households invited to limit their energy consumption “immediately” to preserve gas reserves

3) Jaguar Land Rover’s battle to stop dealerships from selling in China The automaker has strict rules for its dealers who want a very lucrative market share

4) Rail operators hit back at RMT assault on ‘fat cat rail bosses’ Railway chiefs say annual profits average a third of what Mick Lynch claims

5) Thousands of PwC employees to get inflation-matched pay rise PwC raises wages to help attract staff amid warnings of pay rises fueling inflation

What happened overnight

Asian markets rallied again this morning, building on last week’s advances and after a strong performance on Wall Street, speculation that inflation may have peaked has dampened expectations for higher prices. central bank interest rate.

Hong Kong soared more than 2% on strong performance from Chinese tech companies. Indications that the Chinese crackdown on the sector may be coming to an end have added to the optimistic mood in the city.

Tokyo, Shanghai, Seoul, Singapore, Sydney, Manila and Wellington also made good progress.

coming today

Company : No scheduled updates

Economy: Durable Goods Orders, Non-Military Capital Goods Orders, Pending Home Sales (U.S.)

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This notice was published: 2022-06-27 07:14:34