Inflation across the 19-country Eurozone reached 10 percent last month, it’s 11th consecutive month of increases and the first to reach double digits.
Category: TRENDS ON THE GLOBAL ECONOMIC FRONT
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SPOTLIGHT: BIGS GETTING BIGGER
Each week, we report instances where the money junky hedge funds, private equity groups and the already big companies swallow another piece of the global economy. Here are some more of what the BIGS have been gobbling up and how the Bigs keep getting bigger and the rich keep getting richer. It should be noted...
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SPOTLIGHT: CHINA
EUROPEAN COMPANIES CUT BACK OPERATIONS IN CHINA European businesses are having to “reduce, localize, and silo” their work in China because of the country’s deteriorating climate for investment, according to a glum report from the European Union (EU) Chamber of Commerce in China. The report—the group’s “most dark” since its founding in 2000, Chamber president...
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ONLY IN TURKEY: INFLATION RISES, INTEREST RATES FALL
Despite inflation edging above 80 percent in August, Turkey’s central bank cut its benchmark one-week repo rate last week from 13 percent to 12. The country’s lira currency took yet another step down after the announcement, to 18.387 against the dollar. The lira has lost almost a third its value against the greenback so far...
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BANK OF JAPAN INTERVENES TO PROP UP YEN
For the first time since 1998, Japan’s central bank has sold dollars and bought yen to strengthen its currency’s value against the dollar and euro. The yen began this year valued at $115.1. By the end of last week, it had dropped to about $1.43, a loss of roughly 20 percent. By the end of...
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NEW U.K. STIMULUS PLAN POUNDS DOWN POUND
To revive the British economy and snatch it from the brink of recession, newly appointed Prime Minister Liz Truss’s new government proposed the sharpest tax cuts in 50 years and pledged to cap household utility bills. In August, inflation in the U.K. ran at almost 9.9 percent. The Bank of England has raised its key...
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2023 WILL FEEL LIKE A RECESSION EVEN WITHOUT ONE, IMF CHIEF SAYS
Even if the global economy somehow manages to avoid a recession, in 2023 millions of people around the world will suffer as if a recession has taken place, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said in a 21 September Bloomberg interview. “Increased interest rates will bite and we will see the...
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DRAGFLATION: WAR, SANCTIONS, RATE HIKES WILL CUT WORLD GROWTH
The world economy will grow by 2.2 percent next year, the 37-member Organization for Economic Cooperation and Development (OECD) predicted in an updated forecast. The group trimmed growth forecasts for all so-called G-20 countries (the world’s richest), seeing only Indonesia growing faster than the rest, and then only modestly. China’s economic growth will slow to...
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WHEN THE ECONOMY FALLS JOBS GO WITH IT
Dragflation: Economic growth declining and inflation rising… plus the pressure of interest rate hikes that are drying up the cheap money pool are causing companies in many sectors to lay off employees. To illustrate the employment trends and the socioeconomic implications, each week we will list job losses: Wells Enterprises will lay off 320 employees...
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DRAGFLATION: EURO’S VALUE CRUMBLES TO 20-YEAR LOW
On 23 September, the euro’s value sagged to $0.975, its lowest since 2002, after S&P Global published a survey finding that business conditions in Europe are their worst in 20 months as inflation continues at or near record highs. The euro sagged to $0.96 in late Monday trading and closed today at $0.959. S&P’s composite...