As it happened: Global recession fears: Hard to say inflation has peaked, says ECB president

Christine Lagarde, president of European Central Bank has said that it's difficult to predict whether inflation has peaked. Her comment has come after eurozone consumer prices hit a record. Rising energy costs are said to be the main reason behind the inflation.

Speaking at an event in Cyprus, Lagarde said that inflation was "undesirably high".

"Is it at its peak? Difficult to say, and I'm not going to venture there," she said. 
 

US Dollar slid on Tuesday (October 10) against major currencies. Yield on the benchmark US 10-year Treasury have also fallen.
 

Global stocks and bond prices on Tuesday rallied as a growing belief of central banks shifting gear to fight infaltion spread the markets

Reuters reports that the British PM has refused to rule out a cut in benefit payments. 

In August, UK witnessed a 9.9 per cent inflation. Liz Truss's predecessor Boris Johnson had pledged to raise benefits in line with inflation. However, as per BBC the British PM said that she will "support the most vulnerable" even as she refused to commit to her Johnson's pledge.

She said that "we are going to have to make decisions about how we bring back down debt as a proportion of GDP in the medium term."
 

As the global economy suffers a slow down and recession fears rear their ugly head, top Indian IT companies like Wipro, Infosys and Tech Mahindra have reportedly revoked offer letter given to freshers.

As per an ANI report, the companies had earlier delayed the joining by a few months, but later revoked the joining offers. One of the rejection emails reportedly reads "It has been identified that you are not meeting our academic eligibility criteria. Hence your offer stands null and void".

Experts have predicted that India's IT industry will slow down further. In August, as per Naukri.com the industry had a 10 per cent fall in its hiting activity. 

As per the Organisation for Economic Co-operation and Development (OECD), Germany could be the first European economy to fall into recession next year. It also said that the threat of recession also hangs over the United States.

UN Conference on Trade and Development (UNCTAD) has warned that advanced economies' monetary and fiscal policies, risk pushing the world towards global recession and prolonged stagnation, "inflicting worse damage than the financial crisis in 2008 and the COVID-19 shock in 2020".

On Monday, the United Nations encouraged central banks to relax their financial restrictions in order to prevent a global recession. The global organisation said that tight fiscal policies run the risk of plunging the globe into a lengthy stagnation.

As soaring inflation and interest rate hikes weigh on consumer demand worldwide, for the first time in more than two years  Singapore which has an export-led economy witnessed a slump in its manufacturing activity. Experts have warned that this raises the risk of technical recession i.e two straight quarters of negative growth.

Straits Times reports that the decline comes after the country witnessed its second month of contraction in the once booming electronics sector. This sector accounts for 40 per cent of Singapore's industrial output.

The electronics sector's strong performance in the past two years pulled Singapore out of its worst recession in 2020 and had also led its economy to its fastest expansion in more than a decade the next year.

Credit Suisse Group AG's attempts to reassure investors about its financial stability backfired as the credit risk indicator for the global bank surged to a record high while its shares hit a new low. 

There's talk about the bank going under like Lehman Brothers in the US, which was one of the events that precipitated the global financial crisis of 2007-08. 

On Monday, the bank's shares fell by a record 12 per cent in Zurich, and this year alone, they have lost over 60 per cent, the greatest yearly decline in Suisse's record.

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