Page 5 - Europe Economy

World shares mixed; British pound falls to all-time low on tax cut concerns

Global shares were mixed Monday while the British pound declined to an all-time low against the US dollar on concerns over planned tax cuts. France's CAC 40 rose 0.2% in early trading to 5,795.88, while Germany's DAX added 0.2% to 12,311.57. Britain's FTSE 100 edged 0.1% higher to 7,025.51. The futures for the Dow industrials and the S&P 500 were 0.1% lower. In Asian trading, Japan's benchmark Nikkei 225 shed 2.7% to finish at 26,431.55. Australia's S&P/ASX 200 dipped 1.6% to 6,469.40. South Korea's Kospi dropped 3.0% to 2,220.94. Hong Kong's Hang Seng gave up 0.4% to 17,855.14, while the Shanghai Composite lost 1.2% to 3,051.23. The British pound's slide against the dollar picked up pace last week after the UK's new government outlined plans to cut taxes and boost spending. The weakening currency piles pressure on the UK's new Conservative government, which has gambled that slashing taxes and increasing borrowing to compensate will spur economic growth. Many economists say .

British PM Liz Truss may lift immigration cap to fight labour shortage

Plans to introduce more tax cuts next year as part of first full Budget

Euro zone likely entering recession as price rises hit demand: Survey

Overall demand in the euro zone fell to its lowest since November 2020, when the continent was suffering a second wave of Covid-19 infections

Britain sends investors fleeing with historic tax cuts and borrowing

Pound slides below $1.11 for first time in 37 years

Putin says Russia to stop supplying energy if Western price caps imposed

Speaking at an economic forum in Vladivostok, Putin said European calls for a price cap on Russian gas were 'stupid', and would lead to higher global prices and economic problems in Europe

Pound falls to weakest level since 1985 against dollar amid dire UK economy

The last time the sterling-dollar exchange rate was this low the world's richest nations signed the Plaza Accord, an agreement to weaken the US currency

No Stream: EU gas markets brace for price surge after latest Russia gas cut

Europe has accused Russia of weaponising energy supplies in what Moscow has called an 'economic war' with the West over the fallout from the Ukraine conflict

What is Nord Stream 1 pipeline, and why is it critical for Europe?

Nord Stream 1 is the biggest pipeline transporting cheap natural gas between Russia and Europe via Germany

Inflation hits 9.1% in countries using euro currency as fuel prices soar

Inflation in the European countries using the euro currency hit another record in August, fuelled by soaring energy prices mainly driven by Russia's war in Ukraine. Annual inflation in the eurozone's 19 countries rose to 9.1% in August, up from 8.9% in July, according to the latest figures released Wednesday by the European Union statistics agency. Inflation is at the highest levels since record-keeping for the euro began in 1997. Energy prices surged 38.3%, while food prices rose 10.6%. Prices for goods were up 5% and the cost of services rose 3.8%.

Europe's energy concerns drag euro to 20-year low, stokes recession fears

"No surprise then to see the USD at near multi-decade highs against a falling EUR and GBP."

With inflation at 8.9%, Europe bond rally at risk of complacent market

With the worst yet to come in Europe, strategists say policy makers may hike more aggressively than many expect, upending a bond rally that some say has gone too far

European Central Bank set to hike rates for the first time in 11 years

That outlook is getting murkier by the day because inflation is still accelerating and growth slowing sharply

Russia's war expected to hit European Union economy, push up inflation

The EU acknowledged that Russian President Vladimir Putin can keep the European economy off balance for months to come and make any forecast highly uncertain

With Europe slowing, TCS says North America to drive its growth in FY23

The IT major indicated that clients in Europe are more cautious on tech spends given the possibility of deeper recession and ongoing conflict in Eastern Europe, leading to delays in decision making

Euro under pressure as inflation fears send investors to dollar haven

The euro was at $1.044, after losing 0.75% on the dollar the day before, and heading for a monthly decline of 2.7%

Russia-Ukraine war worsens financial stability risks: European Central Bank

Financial stability risks have increased as the conflict has impacted all aspects of economic activity and financing conditions, ECB Vice President Luis de Guindos

Germany backs 40 bn euro supplementary budget to fund Ukraine costs

The draft supplementary budget envisages new borrowing will take Germany's net debt in 2022 to 138.94 billion euros with the total government expenditure estimated at 495.8 billion euros

Ukraine's economy to shrink by 30% in 2022 due to war, says EBRD

Russia's invasion has upended trade in energy, agricultural commodities and fertilisers and disrupted supply chains, resulting in slower growth across eastern Europe

Portugal registers 2.6 % GDP growth in Q1 amid rise in private consumption

The GDP also grew by 11.9 per cent compared to the same period last year, Xinhua news agency quoted the country's national institute of statistics (INE) as saying

Central bank of Russia lowers key interest rate by 300 basis points to 14%

"With price and financial stability risks no longer on the rise, conditions have allowed for the key rate reduction," Xinhua news agency quoted the bank as saying on Friday