UK economy unexpectedly shrank in August after growth the previous month. According to the Office for National Statistics, gross domestic product contracted by 0.3 percent in August.

UK: Economy shrinks 0.3% in August

The International Monetary Fund (IMF) said that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast. According to the latest data, the global economy will grow by 2.7 percent in 2023 resulting in recession in some countries.

IMF cuts global growth forecast for 2023, warns ‘the worst is yet to come’

A top executive has warned that the US could enter a recession in the next 6 to 9 months. Molly Gambhir tells you how the US economy is flashing warning signs.

Gravitas | Top Executive: US Recession in 6 to 9 months

JP Morgan Chase CEO Jamie Dimon has predicted that the United States and global economy would plunge into a recession next year. He was speaking with CNBC when he made the prediction.

Runaway inflation, big interest rates hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative easing policy are among the indicators of a potential recession, he said in an interview to the business news channel.

"These are very, very serious things which I think are likely to push the US and the world — I mean, Europe is already in recession — and they're likely to put the US in some kind of recession six to nine months from now," Dimon said.

Dimon's comments came just when US banks would begin to file third-quarter earnings from Friday. This year the benchmark S&amp;P 500 index has lost about 24 per cent. All three major US indices have been trading in bear market territory.

Dimon said the S&amp;P 500 could fall by "another easy 20%" from the current levels, with the next 20% slide likely to "be much more painful than the first", according to the CNBC report.

Earlier this year, Dimon had asked investors to brace for an economic "hurricane", with JPMorgan, the biggest US investment bank, suspending share buybacks in July after missing quarterly Wall Street expectations.

(With inputs from agencies)

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JP Morgan Chase CEO Jamie Dimon has predicted that the United States and global economy would plunge into a recession next year. He was speaking with CNBC when he made the prediction.

JP Morgan Chase CEO Jamie Dimon has predicted that the United States and global economy would plunge into a recession next year. He was speaking with CNBC when he made the prediction. Runaway inflation, big interest rates hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative easing policy are among the indicators of a potential recession, he said in an interview to the business news channel. "These are very, very serious things which I think are likely to push the US and the world — I mean, Europe is already in recession — and they're likely to put the US in some kind of recession six to nine months from now," Dimon said. Dimon's comments came just when US banks would begin to file third-quarter earnings from Friday. This year the benchmark S&P 500 index has lost about 24 per cent. All three major US indices have been trading in bear market territory. Dimon said the S&P 500 could fall by "another easy 20%" from the current levels, with the next 20% slide likely to "be much more painful than the first", according to the CNBC report. Earlier this year, Dimon had asked investors to brace for an economic "hurricane", with JPMorgan, the biggest US investment bank, suspending share buybacks in July after missing quarterly Wall Street expectations. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US economy to dip into recession next year: JP Morgan CEO Jamie Dimon

JPMorgan Chase and chief executive officer Jamie Dimon warned Monday that a serious mix of headwinds will likely send the United States into a recession in the next six to nine months.

World Business Watch: 'US recession in six to nine months', warns JPMorgan's CEO Dimon

Another global executive has joined the chorus of fears of global recessions. This time the warning has come from JPMorgan Chase CEO Jamie Dimon who said serious headwinds are likely to push the US and Global economies into recession by the middle of next year.

JPMorgan's CEO warns on US recession

Renault CEO Luca de Meo warns of a global recession. He said the business world was bracing for a possible recession, adding that the French carmaker is strong enough to be able to weather that "storm."

World Business Watch: Renault CEO Luca de Meo warns of a global recession

Many financial institutions have predicted that the world is headed for another recession.

As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020.

In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it.

It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation.

Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide.

US dollar

The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days.

But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers.

Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones.

The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others.

As a result, it makes it more expensive for these nations to import essential items like food and fuel.

In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher

US economy faltering

The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’.

But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike.

The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. &nbsp;

Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period.

Corporate America tightens purse strings

Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN.

In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook.

It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent.

Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. &nbsp;The move took a toll on its shares as it fell by 4 per cent.

Bear makes an entry into Wall Street

According to CNN, Wall Street is now on track for its worst year since 2008.

After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market.

The S&amp;P 500, the broadest measure of Wall Street —&nbsp;and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are&nbsp;in bear markets— down at least 20 per cent from their most recent highs.

A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies.

War and inflation

The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom&nbsp;

The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine.

After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled.

The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN.

When would recession hit?

While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last.

(With inputs from agencies)

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Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff. On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020. In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it. It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation. Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide. US dollar The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days. But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers. Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones. The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others. As a result, it makes it more expensive for these nations to import essential items like food and fuel. In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher US economy faltering The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’. But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike. The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period. Corporate America tightens purse strings Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN. In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook. It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent. Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. The move took a toll on its shares as it fell by 4 per cent. Bear makes an entry into Wall Street According to CNN, Wall Street is now on track for its worst year since 2008. After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market. The S&P 500, the broadest measure of Wall Street — and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are in bear markets— down at least 20 per cent from their most recent highs. A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies. War and inflation The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine. After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled. The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN. When would recession hit? While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last. (With inputs from agencies) WATCH WION LIVE HERE:

Five signs why global economy is headed for recession

Raising the risk of a technical recession, factory activity in Singapore has contracted for the first time since 2020. This was the second month of contraction in the electronics sector.

World Business Watch: Singapore factory activity contracts for first time since 2020

The United States&nbsp;economy shrank in the first half of this year, confirming concerns about a general downturn that might trigger a recession. At the same time, a measure that frequently indicates the rate of layoffs—the number of persons applying for unemployment benefits—fell to a five-month low. The decrease shows that businesses are keeping their employees despite the downturn in growth and that those who are let go swiftly find other employment.&nbsp;

The unemployment rate is close to a 50-year low, and hiring is still quite robust. Few experts believe that we are now in a recession because of the strength of the labour market. Economists anticipate the economy will grow as long as people continue to spend money, albeit slowly.

Recession is often defined as a six-month period of decline. But in a post-pandemic economy when growth is low but the employment market is robust, nothing is straightforward. Since growth abruptly came to an end in March 2020 when Covid-19 hit and 22 million Americans were suddenly out of work, the path of the economy has baffled officials at the Federal Reserve as well as many private economists.&nbsp;

Despite recent drops in gas prices and other expenses, inflation is still close to its highest point in four decades. Despite many workers receiving salary hikes, inflation is still so high that Americans' purchasing power is declining. Households with lower incomes, those who are Black and Hispanic, and those who are struggling to pay their bills are disproportionately feeling the burden.

Who decides?

The National Bureau of Economic Research, whose Business Cycle Dating Committee defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months," is the organisation that formally declares recessions.&nbsp;

The committee uses job trends as a significant indicator for assessing recessions. Numerous other data points are also evaluated, such as measures of income, employment, inflation-adjusted expenditure, retail sales, and manufacturing production. It gives a lot of weight to employment and is an indicator of inflation-adjusted income that doesn't include government benefits like Social Security.&nbsp;

However, the NBER frequently waits until after a recession has started, sometimes for as long as a year.

Can a common man sense it?

Yes, as a large number of individuals currently feel more financially pressured. Higher costs have reduced Americans' purchasing power since most people's pay increases have lagged behind inflation.&nbsp;

According to Walmart, rising gas and food prices have made it necessary for its customers to cut down on discretionary purchases like new apparel. This is a glaring indication that consumer spending, the main engine of the economy, is waning. Walmart, the biggest retailer in the country, has lowered its profit forecast and said that it would have to discount more goods, including furniture and electronics.

Unemployment -- clear signal&nbsp;

According to analysts, a sustained increase in job losses and a spike in unemployment would be the most obvious signs that a recession is beginning. A recession has always occurred since World War II when the unemployment rate increased by a half percentage point over a period of many months, according to economist and former Fed employee Claudia Sahm.&nbsp;

Numerous analysts keep track of the number of people who apply for unemployment benefits each week because it shows if layoffs are becoming worse or not. The number of weekly applications for unemployment benefits has decreased to a five-month low, indicating that few firms are using layoffs as a last alternative in the face of a labour shortage.

Inverted yield curve&nbsp;

Many economists also keep an eye on fluctuations in the interest rates, or yields, on various bonds in search of the "inverted yield curve," a recession indicator. When the yield on a short-term Treasury, such as the 3-month T-bill, is lower than the yield on a 10-year Treasury, this occurs. That is strange. In return for locking up their money for a longer length of time, longer-term bonds often provide investors with a larger yield.&nbsp;

In general, inverted yield curves indicate that investors anticipate a downturn that will force the Fed to lower interest rates. Recessions frequently precede inverted curves. After the yield curve inverts, a slump may not occur for 18 to 24 months.

Interest rate&nbsp;

The economy's warning signs—slowing growth and high hiring—have presented a challenge for the Fed. Jerome Powell, the chair, wants a "soft landing, "In which inflation returns to the Fed's 2 per cent&nbsp;objective and the economy slows just enough to restrict wage growth and hiring without triggering a recession.&nbsp;

Powell has recognised, however, that it is getting harder to come to such a conclusion. He made it plain last week that the Fed will continue raising rates if necessary to control inflation, despite a deteriorating economy that may enter a recession.&nbsp;

(with inputs from agencies) 
&nbsp;

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The United States economy shrank in the first half of this year, confirming concerns about a general downturn that might trigger a recession. At the same time, a measure that frequently indicates the rate of layoffs—the number of persons applying for unemployment benefits—fell to a five-month low.

The United States economy shrank in the first half of this year, confirming concerns about a general downturn that might trigger a recession. At the same time, a measure that frequently indicates the rate of layoffs—the number of persons applying for unemployment benefits—fell to a five-month low. The decrease shows that businesses are keeping their employees despite the downturn in growth and that those who are let go swiftly find other employment. The unemployment rate is close to a 50-year low, and hiring is still quite robust. Few experts believe that we are now in a recession because of the strength of the labour market. Economists anticipate the economy will grow as long as people continue to spend money, albeit slowly. Recession is often defined as a six-month period of decline. But in a post-pandemic economy when growth is low but the employment market is robust, nothing is straightforward. Since growth abruptly came to an end in March 2020 when Covid-19 hit and 22 million Americans were suddenly out of work, the path of the economy has baffled officials at the Federal Reserve as well as many private economists. Despite recent drops in gas prices and other expenses, inflation is still close to its highest point in four decades. Despite many workers receiving salary hikes, inflation is still so high that Americans' purchasing power is declining. Households with lower incomes, those who are Black and Hispanic, and those who are struggling to pay their bills are disproportionately feeling the burden. Who decides? The National Bureau of Economic Research, whose Business Cycle Dating Committee defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months," is the organisation that formally declares recessions. The committee uses job trends as a significant indicator for assessing recessions. Numerous other data points are also evaluated, such as measures of income, employment, inflation-adjusted expenditure, retail sales, and manufacturing production. It gives a lot of weight to employment and is an indicator of inflation-adjusted income that doesn't include government benefits like Social Security. However, the NBER frequently waits until after a recession has started, sometimes for as long as a year. Can a common man sense it? Yes, as a large number of individuals currently feel more financially pressured. Higher costs have reduced Americans' purchasing power since most people's pay increases have lagged behind inflation. According to Walmart, rising gas and food prices have made it necessary for its customers to cut down on discretionary purchases like new apparel. This is a glaring indication that consumer spending, the main engine of the economy, is waning. Walmart, the biggest retailer in the country, has lowered its profit forecast and said that it would have to discount more goods, including furniture and electronics. Unemployment -- clear signal According to analysts, a sustained increase in job losses and a spike in unemployment would be the most obvious signs that a recession is beginning. A recession has always occurred since World War II when the unemployment rate increased by a half percentage point over a period of many months, according to economist and former Fed employee Claudia Sahm. Numerous analysts keep track of the number of people who apply for unemployment benefits each week because it shows if layoffs are becoming worse or not. The number of weekly applications for unemployment benefits has decreased to a five-month low, indicating that few firms are using layoffs as a last alternative in the face of a labour shortage. Inverted yield curve Many economists also keep an eye on fluctuations in the interest rates, or yields, on various bonds in search of the "inverted yield curve," a recession indicator. When the yield on a short-term Treasury, such as the 3-month T-bill, is lower than the yield on a 10-year Treasury, this occurs. That is strange. In return for locking up their money for a longer length of time, longer-term bonds often provide investors with a larger yield. In general, inverted yield curves indicate that investors anticipate a downturn that will force the Fed to lower interest rates. Recessions frequently precede inverted curves. After the yield curve inverts, a slump may not occur for 18 to 24 months. Interest rate The economy's warning signs—slowing growth and high hiring—have presented a challenge for the Fed. Jerome Powell, the chair, wants a "soft landing, "In which inflation returns to the Fed's 2 per cent objective and the economy slows just enough to restrict wage growth and hiring without triggering a recession. Powell has recognised, however, that it is getting harder to come to such a conclusion. He made it plain last week that the Fed will continue raising rates if necessary to control inflation, despite a deteriorating economy that may enter a recession. (with inputs from agencies)

Explained: Early signs of a recession; who decides if it's officially begun?

World Bank President David Malpass has warned that it could take years for global energy to diversify away from Russia after its invasion of Ukraine, prolonging the risk of stagflation, or a period of low growth and high inflation.

WION Business News | Recession: World Bank President Malpass sees risk of stagflation

As the pound continues to hit an all-time low against dollar, the Bank of England (BOE) on Wednesday announced that it will be temporarily buying bonds to calm the jangling nerves of the market.

As the pound continues to hit an all-time low against dollar, the Bank of England (BOE) on Wednesday announced that it will be temporarily buying bonds to calm the jangling nerves of the market. "The Bank will carry out temporary purchases of long-dated UK government bonds from 28 September. The purpose of these purchases will be to restore orderly market conditions," said the BOE in a statement. Reportedly, the auction for the selling of bonds will take place from today till October 14 and will be halted when "risks to market functioning are judged to have subsided." "The purchases will be carried out on whatever scale is necessary to effect this outcome. The operation will be fully indemnified by HM Treasury," it further added. As reported by WION, the tax cuts announced in the mini-budget by British finance minister Kwasi Kwarteng have resulted in the pound slipping to its lowest mark of $1.0327 against the dollar, for the first time since 1971. Read more: Pound hits all-time low against dollar as Liz Truss' tax cuts come under pressure The announcements made by Kwarteng included a number of tax cuts along with reliefs for homeowners and people looking for loans. However, Bloomberg reported that the UK current account deficit has also widened to a record level which has affected the pound negatively. While the pound takes a beating, the BOE, in the aftermath of Queen Elizabeth II's demise has also announced a partial 'demonetisation'. Reportedly, by September 30, about £6 billion in old £50 notes and more than £5 billion in old £20 notes will no longer be recognised by UK businesses. The paper notes will be replaced by polymer £20 and £50 notes which have been in circulation for more than two years (since February 2020). Read more: Start of new era: King Charles III to appear on banknotes by mid-2024, confirms Bank of England Moreover, with the winter fast approaching and the UK, akin to the rest of Europe scrambling to fill its energy reserves, the price of utilities is expected to skyrocket, which could trigger inflation to record levels, stressing the pound further. (With inputs from agencies) WATCH WION LIVE HERE:

As pound slips, Bank of England steps in to buy bonds and restore parity

Let us take a look at stories generating interest across WION's social media channels.

Trending on WION | Study: India might see double-digit salary increase in 2023

The leader of the UK’s main opposition party Keir Starmer vowed to reverse a tax cut for top earners announced by the Conservative government as the nation heads for recession.

UK: Labour leader Keir Starmer plans to cancel tax cut for people who earn over $160,000

Indian firms would likely increase employee compensation by 10.4 per cent&nbsp;in 2023, which would be virtually in line with the 10.6 per cent&nbsp;increase seen so far in 2022, as reported by Reuters.&nbsp;

The likelihood of a double-digit pay hike comes as the south Asian nation struggles with skyrocketing inflation amid concerns of a recession in the global economy. In August, India's inflation increased to 7 per cent, continuing an eight-month streak in which it exceeded the central bank's tolerance target.&nbsp;

In a statement based on a poll, Roopank Chaudhary, partner, of human capital solutions at Aon in India, said that the compensation boost reflects "the confidence that corporate India has in its strong business performance."

Data from 1,300 businesses in more than 40 categories were analysed for the survey.&nbsp;

The impact of increased costs and salary pressures must be balanced, Chaudhary added, with the relatively high rate of turnover and the continuous need for vital talent.&nbsp;

The study revealed that staff departures were still high in the first half of this year (20.3 per cent), but slightly lower than the 21 per cent&nbsp;in 2021.&nbsp;

With a forecasted pay growth of 12.8 per cent, e-commerce tops all other sectors, followed by start-ups, hi-tech/information technology and IT-enabled services, 11.3 per cent, and financial institutions, 10.7 per cent.

(with inputs from agencies)

Indian firms would likely increase employee compensation by 10.4 per cent in 2023, which would be virtually in line with the 10.6 per cent increase seen so far in 2022, as reported by Reuters.

Indian firms would likely increase employee compensation by 10.4 per cent in 2023, which would be virtually in line with the 10.6 per cent increase seen so far in 2022, as reported by Reuters. The likelihood of a double-digit pay hike comes as the south Asian nation struggles with skyrocketing inflation amid concerns of a recession in the global economy. In August, India's inflation increased to 7 per cent, continuing an eight-month streak in which it exceeded the central bank's tolerance target. In a statement based on a poll, Roopank Chaudhary, partner, of human capital solutions at Aon in India, said that the compensation boost reflects "the confidence that corporate India has in its strong business performance." Data from 1,300 businesses in more than 40 categories were analysed for the survey. The impact of increased costs and salary pressures must be balanced, Chaudhary added, with the relatively high rate of turnover and the continuous need for vital talent. The study revealed that staff departures were still high in the first half of this year (20.3 per cent), but slightly lower than the 21 per cent in 2021. With a forecasted pay growth of 12.8 per cent, e-commerce tops all other sectors, followed by start-ups, hi-tech/information technology and IT-enabled services, 11.3 per cent, and financial institutions, 10.7 per cent. (with inputs from agencies)

India might see double-digit salary increase in 2023 amid fears of global recession: Study

Economist Nouriel Roubini had correctly predicted the 2008 financial crisis. He now believes a "long and ugly" recession is coming in 2023. Molly Gambhir tells you more.

Gravitas: Fears of a "severe and ugly" recession in 2023

The Bank of England raised its key interest rate to 2.25% from 1.75% and said it would continue to "respond forcefully, as necessary" to inflation, despite the country entering recession.

Bank of England raises interest rate to 2.25% from 1.75% , in seventh consecutive hike

A World Bank assessment says that aggressive interest rate hikes by central banks could prove to be inadequate to bring inflation under control. Priyanka Sharma tells you how this could lead to a recession.

Gravitas: World Bank fears a global recession in 2023

After data revealed that UK retail sales plunged significantly in August as the rise in the cost of living continued to affect consumers, the pound dropped to a fresh 37-year low against the US dollar.&nbsp;

The 1.6 per cent&nbsp;larger-than-anticipated decline in sales volumes raised further worries about the status of the economy.&nbsp;

As a result of consumers making budget cuts in response to rising costs, sales across all retail sectors decreased in August.&nbsp;

Retail data, according to some analysts, indicated that the UK is already in a recession.
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In the wake of the publication of the retail sales numbers, the sterling dropped more than 1 per cent&nbsp;versus the dollar, reaching $1.13, its lowest level since 1985. Because of the weak pound, British tourists will find that their money does not go as far.&nbsp;

This occurs at a time when UK inflation, or the rate at which prices increase, is at a level that is over 40 years high, albeit declining from 10.1 per cent&nbsp;in July to 9.9 per cent.&nbsp;

According to the Bank of England, the UK will experience a recession at the end of this year, and interest rates will likely continue to rise in an effort to stop inflation.&nbsp;

The retail sales numbers for August confirmed Capital Economics' assessment that the UK economy is "already in recession", according to Olivia Cross.

Also Read:<a href="https://www.wionews.com/world/china-plans-to-impose-sanctions-on-ceos-of-us-companies-over-arms-sales-to-taiwan-516760">&nbsp;China plans to impose sanctions on CEOs of US companies over arms sales to Taiwan</a>

When the economy shrinks for two consecutive three-month periods, it is said to be in a recession.&nbsp;

Households have had to make spending cuts as a result of price increases and impending increases in energy costs in October.&nbsp;

To aid consumers with their energy bills, the government did nevertheless introduce the Energy Price Guarantee last week. The assistance will result in a two-year cap on the yearly energy expense for a typical home at £2,500.&nbsp;

Before the government took action, annual energy costs were anticipated to reach £3,549 before going much higher in 2023.

(with inputs from agencies)

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After data revealed that UK retail sales plunged significantly in August as the rise in the cost of living continued to affect consumers, the pound dropped to a fresh 37-year low against the US dollar.

After data revealed that UK retail sales plunged significantly in August as the rise in the cost of living continued to affect consumers, the pound dropped to a fresh 37-year low against the US dollar. The 1.6 per cent larger-than-anticipated decline in sales volumes raised further worries about the status of the economy. As a result of consumers making budget cuts in response to rising costs, sales across all retail sectors decreased in August. Retail data, according to some analysts, indicated that the UK is already in a recession. In the wake of the publication of the retail sales numbers, the sterling dropped more than 1 per cent versus the dollar, reaching $1.13, its lowest level since 1985. Because of the weak pound, British tourists will find that their money does not go as far. This occurs at a time when UK inflation, or the rate at which prices increase, is at a level that is over 40 years high, albeit declining from 10.1 per cent in July to 9.9 per cent. According to the Bank of England, the UK will experience a recession at the end of this year, and interest rates will likely continue to rise in an effort to stop inflation. The retail sales numbers for August confirmed Capital Economics' assessment that the UK economy is "already in recession", according to Olivia Cross. Also Read: China plans to impose sanctions on CEOs of US companies over arms sales to Taiwan When the economy shrinks for two consecutive three-month periods, it is said to be in a recession. Households have had to make spending cuts as a result of price increases and impending increases in energy costs in October. To aid consumers with their energy bills, the government did nevertheless introduce the Energy Price Guarantee last week. The assistance will result in a two-year cap on the yearly energy expense for a typical home at £2,500. Before the government took action, annual energy costs were anticipated to reach £3,549 before going much higher in 2023. (with inputs from agencies)

Pound hits new 37-year low as consumer spending falls, stokes recession chatter

The World Bank has expressed fears that the world may be edging towards a global recession following a hike in interest rates by central banks to combat inflation across the world simultaneously. It added that the world's three largest economies - the United States, China, and the euro area, have been slowing sharply, and even a "moderate hit to the global economy over the next year could tip it into recession".

Following a post-recession recovery since 1970, the global economy was now in its steepest slowdown, the bank said, adding that consumer confidence had already dropped more sharply than in the run-up to previous global recessions.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/zero-probability-of-recession-in-india-while-us-has-a-40-per-cent-chance-study-500793">Zero probability of recession in India while US has a 40 per cent chance: Study</a>

"Global growth is slowing sharply, with further slowing likely as more countries fall into recession," World Bank President David Malpass said, adding&nbsp;that these trends would persist, with devastating consequences for emerging market and developing economies.

Interest rate hikes and related policy actions might not be sufficient to bring inflation back down to levels seen before the COVID-19, the bank said. Unless supply disruptions and labour-market pressures subsided, the global core inflation rate, excluding energy, could stay at about 5 per cent in 2023, nearly double the five-year average before the pandemic.

Central banks may need to raise interest rates by an additional two percentage points, on top of the two-percentage point increase already seen over the 2021 average, it said.

Also Read |&nbsp;<a href="https://www.wionews.com/world/global-recession-incoming-three-wall-street-leaders-enlist-possible-reasons-for-the-economic-doomsday-498373">Global recession incoming? Three Wall Street leaders enlist possible reasons for the economic doomsday</a>

However, that is likely to slow global gross domestic product growth to 0.5 per cent in 2023, or a 0.4 per cent contraction in per–capita terms, which would meet the technical definition of a global recession, it added.

Malpass said policymakers need to now focus on boosting production, including efforts to generate additional investment and productivity gains.

World Bank vice president Ayhan Kose said a recent tightening of monetary and fiscal policies would help cut inflation, but the highly synchronous nature of the measures could compound the situation and steepen the global growth slowdown.

(With inputs from agencies)

&nbsp;

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The World Bank has expressed fears that the world may be edging towards a global recession following a hike in interest rates by central banks to combat inflation across the world simultaneously.

The World Bank has expressed fears that the world may be edging towards a global recession following a hike in interest rates by central banks to combat inflation across the world simultaneously. It added that the world's three largest economies - the United States, China, and the euro area, have been slowing sharply, and even a "moderate hit to the global economy over the next year could tip it into recession". Following a post-recession recovery since 1970, the global economy was now in its steepest slowdown, the bank said, adding that consumer confidence had already dropped more sharply than in the run-up to previous global recessions. Also Read | Zero probability of recession in India while US has a 40 per cent chance: Study "Global growth is slowing sharply, with further slowing likely as more countries fall into recession," World Bank President David Malpass said, adding that these trends would persist, with devastating consequences for emerging market and developing economies. Interest rate hikes and related policy actions might not be sufficient to bring inflation back down to levels seen before the COVID-19, the bank said. Unless supply disruptions and labour-market pressures subsided, the global core inflation rate, excluding energy, could stay at about 5 per cent in 2023, nearly double the five-year average before the pandemic. Central banks may need to raise interest rates by an additional two percentage points, on top of the two-percentage point increase already seen over the 2021 average, it said. Also Read | Global recession incoming? Three Wall Street leaders enlist possible reasons for the economic doomsday However, that is likely to slow global gross domestic product growth to 0.5 per cent in 2023, or a 0.4 per cent contraction in per–capita terms, which would meet the technical definition of a global recession, it added. Malpass said policymakers need to now focus on boosting production, including efforts to generate additional investment and productivity gains. World Bank vice president Ayhan Kose said a recent tightening of monetary and fiscal policies would help cut inflation, but the highly synchronous nature of the measures could compound the situation and steepen the global growth slowdown. (With inputs from agencies)

Global economy in steepest slowdown, may be edging towards recession, warns World Bank

The world economies may fall into a global recession next year amid aggressive monetary policy tightening by central banks to tame inflation, the World Bank said.

World Business Watch: World Bank sees rising risk of global recession in 2023 amid rate hikes

Though many of the experts of fifth-generation warfare thought that conventional war has become history, the Russia-Ukraine war has put their idea of modern-day warfare into serious scrutiny.&nbsp;

Many thought that in the twenty-first century warfare will be determined less on the battlefield and more in cubicles and on screen.&nbsp;

However, global economic repercussions caused by the warfare between Russia and Ukraine and economic warfare between Russia and, Europe and&nbsp;the United States, their spiralling actions and counteractions by the two sides have already brought the world to the brink of recession.&nbsp;

Russia has continued its oil exports, though it has had to give a deep discount. But the EU has paid a high price. Russia has reduced gas supply through Nordstrom I to 20% of capacity.&nbsp;

The price of natural gas has soared in the EU to $60 per MMBTU. This will have a cascading effect on the price of LNG in Asian markets. They have tripled to $45.39 per MMBTU on August 2022, from $15.65 MMBTU a year ago on August 2021.&nbsp;

In order to survive winter, the EU has initiated operations at conventional fossil fuel units (coal base, oil-based), which were taken out of operation due to their commitment to net zero by 2050.&nbsp;

This may further push back the target emission cut committed by the EU at London Summit. High gas prices have pushed the EU to switch from gas to oil and coal to meet its heating and power needs. This will add to the oil demand. The oil market is calm now because of the fear of recession. But if falling prices lead OPEC to cut production again, there will be a spike in crude prices again.&nbsp;

The oil prices will also be affected by the fate of the Iranian nuclear deal. Recently, the negotiations had been resumed in Vienna. The delegations have now gone back to their capitals for a political decision. If the deal works out, it will pave the way for Iranian oil exports to be resumed. Before the latest round of sanctions, Iran was exporting 2.1 million barrels per day.&nbsp;

This will not substitute more than five million barrels of Russian oil exports in case EU sanctions against that country deepen. Iranian oil, if it comes back to the market, will be a relief for the international oil market, though would not be sufficient to substitute Russian Supplies for EU, considering the same production rate from OPEC. However, considering the present US-Israel-EU lobbying and the current stance of the Iranian govt., it can be predicted that Iranian oil may not come into the international market in near future soon.&nbsp;

In the meantime, the Middle East has become a field for the cold war for US and Russia. US President Joe Biden’s visit to Israel and Saudi Arabia was followed by the visit of Russian President Vladimir Putin to the other side of the gulf. Putin visited Tehran, where he also met the Turkish President. The Turkish economy has been in deep crisis, but its President harbours regional ambitions. Its control of the entry and exit from the Black Sea has underlined its locational advantage for both sides in the Ukraine crisis. This has increased the importance of Turkey to both camps, though Turkey is a NATO member.&nbsp;

The sharp increase in oil prices following the Ukraine war brought President Biden to Saudi Arabia. This was seen as a departure from the position taken by candidate Biden during his election campaign when he had criticized the Crown Prince and threatened to make the Saudi Kingdom a pariah state. What prompted President Biden’s visit to the Saudi Kingdom was the increase in petrol price at the pump in the USA. This had reached the US-wide average of $5 per gallon. This was well past the comfort level of $4 per gallon long held as the limit the US consumer could tolerate. This had an ominous implication in an election year. The Congressional elections are due in November. A loss of the democratic majority in the house would seriously cramp President Biden’s capacity to shape the legislative agenda for the rest of his term.

The Crown Prince promised an increase in production. But the increase of 1,00,000 barrels per day announced subsequently by OPEC&nbsp;was rather disappointing. It was the smallest increase by that grouping in recent years. Despite, the underwhelming response to US President’s request, the market has not only stayed calm, but the prices have gone down.

The OPEC basket of crude has come down from $110.9 to $103.2 per barrel from July’22 last week to August’22 last week. The Indian crude oil basket has come down from $108.92 to $98.31 per barrel during the same period. This can only be attributed to fear of recession. The US economy has contracted for two quarters in a row. The balance in the oil market remains precarious. Any increase in geopolitical tensions in Europe could again lead to a spike in prices.&nbsp;

As the US is trying artificially hold the price of crude in the international oil market by pushing OPEC/Saudi Arabia, any upliftment of sanction on Russian or Iranian oil may immediately spike the oil price very high, as OPEC will not let their revenue cut due to reduction of capacity in future. Crown Prince Mohammad Bin Salman promised to raise the oil production to 13 million barrels per day by 2027.&nbsp;

But this is the long-range target. President Biden wanted prices to be moderated before the elections. The overriding concern was to maintain international oil price stable, even if more stringent EU sanctions against the import of Russian oil go into effect.&nbsp;

Though many of the experts of fifth-generation warfare thought that conventional war has become history, the Russia-Ukraine war has put their idea of modern-day warfare into serious scrutiny.

Though many of the experts of fifth-generation warfare thought that conventional war has become history, the Russia-Ukraine war has put their idea of modern-day warfare into serious scrutiny. Many thought that in the twenty-first century warfare will be determined less on the battlefield and more in cubicles and on screen. However, global economic repercussions caused by the warfare between Russia and Ukraine and economic warfare between Russia and, Europe and the United States, their spiralling actions and counteractions by the two sides have already brought the world to the brink of recession. Russia has continued its oil exports, though it has had to give a deep discount. But the EU has paid a high price. Russia has reduced gas supply through Nordstrom I to 20% of capacity. The price of natural gas has soared in the EU to $60 per MMBTU. This will have a cascading effect on the price of LNG in Asian markets. They have tripled to $45.39 per MMBTU on August 2022, from $15.65 MMBTU a year ago on August 2021. In order to survive winter, the EU has initiated operations at conventional fossil fuel units (coal base, oil-based), which were taken out of operation due to their commitment to net zero by 2050. This may further push back the target emission cut committed by the EU at London Summit. High gas prices have pushed the EU to switch from gas to oil and coal to meet its heating and power needs. This will add to the oil demand. The oil market is calm now because of the fear of recession. But if falling prices lead OPEC to cut production again, there will be a spike in crude prices again. The oil prices will also be affected by the fate of the Iranian nuclear deal. Recently, the negotiations had been resumed in Vienna. The delegations have now gone back to their capitals for a political decision. If the deal works out, it will pave the way for Iranian oil exports to be resumed. Before the latest round of sanctions, Iran was exporting 2.1 million barrels per day. This will not substitute more than five million barrels of Russian oil exports in case EU sanctions against that country deepen. Iranian oil, if it comes back to the market, will be a relief for the international oil market, though would not be sufficient to substitute Russian Supplies for EU, considering the same production rate from OPEC. However, considering the present US-Israel-EU lobbying and the current stance of the Iranian govt., it can be predicted that Iranian oil may not come into the international market in near future soon. In the meantime, the Middle East has become a field for the cold war for US and Russia. US President Joe Biden’s visit to Israel and Saudi Arabia was followed by the visit of Russian President Vladimir Putin to the other side of the gulf. Putin visited Tehran, where he also met the Turkish President. The Turkish economy has been in deep crisis, but its President harbours regional ambitions. Its control of the entry and exit from the Black Sea has underlined its locational advantage for both sides in the Ukraine crisis. This has increased the importance of Turkey to both camps, though Turkey is a NATO member. The sharp increase in oil prices following the Ukraine war brought President Biden to Saudi Arabia. This was seen as a departure from the position taken by candidate Biden during his election campaign when he had criticized the Crown Prince and threatened to make the Saudi Kingdom a pariah state. What prompted President Biden’s visit to the Saudi Kingdom was the increase in petrol price at the pump in the USA. This had reached the US-wide average of $5 per gallon. This was well past the comfort level of $4 per gallon long held as the limit the US consumer could tolerate. This had an ominous implication in an election year. The Congressional elections are due in November. A loss of the democratic majority in the house would seriously cramp President Biden’s capacity to shape the legislative agenda for the rest of his term. The Crown Prince promised an increase in production. But the increase of 1,00,000 barrels per day announced subsequently by OPEC was rather disappointing. It was the smallest increase by that grouping in recent years. Despite, the underwhelming response to US President’s request, the market has not only stayed calm, but the prices have gone down. The OPEC basket of crude has come down from $110.9 to $103.2 per barrel from July’22 last week to August’22 last week. The Indian crude oil basket has come down from $108.92 to $98.31 per barrel during the same period. This can only be attributed to fear of recession. The US economy has contracted for two quarters in a row. The balance in the oil market remains precarious. Any increase in geopolitical tensions in Europe could again lead to a spike in prices. As the US is trying artificially hold the price of crude in the international oil market by pushing OPEC/Saudi Arabia, any upliftment of sanction on Russian or Iranian oil may immediately spike the oil price very high, as OPEC will not let their revenue cut due to reduction of capacity in future. Crown Prince Mohammad Bin Salman promised to raise the oil production to 13 million barrels per day by 2027. But this is the long-range target. President Biden wanted prices to be moderated before the elections. The overriding concern was to maintain international oil price stable, even if more stringent EU sanctions against the import of Russian oil go into effect.

International oil and gas prices may further surge. World is on the verge of deep recession

Economists are becoming more pessimistic about Germany than they have been since the 2008 financial crisis. The Europe's biggest economy is facing significant pressures at the moment, here's our report.

Pessimism over German economy grows, recession inevitable for Germany?

European Central Bank policymakers see a rising risk that they will have to raise their key interest rate to 2% or more to curb record-high inflation in the euro zone despite a likely recession.

World Business Watch: ECB governors see rising risk of rate hitting 2% to curb inflation

Experts have warned that the UK's recession-threatened economy, which saw a rebound in July, may take a hit from the public holiday marking Queen Elizabeth II's funeral next week.

Following a 0.6 per cent drop in June, the nation's gross domestic product (GDP) saw an expansion of 0.2 per cent, reports AFP citing a statement by the Office for National Statistics.&nbsp;

Experts have attributed the June dip to a public holiday for Queen's platinum jubilee, which marked her 70 years on the throne. Now another public holiday is scheduled next week for her funeral.

Watch |&nbsp;Will Queen Elizabeth's Corgis be at her funeral? Well, royal watchers want them to be

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"The feeble 0.2-percent bounce back in July was driven by weak GDP in June due in part to the loss of working days from the Jubilee long weekend," notes KPMG UK chief economist Yael Selfin.

He also expressed concern that the GDP in July remained below May levels, as per him this points to "overall contraction over the first two months of summer."

"Looking ahead, the extra public holiday for the queen's funeral on September 19 has the potential to be more damaging for the economy than the extra day off for the Jubilee in June," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.

Also read |&nbsp;<a href="https://www.wionews.com/world/king-charles-iii-makes-first-address-to-british-parliament-515469" hreflang="en">King Charles III makes first address to British parliament</a>

He predicts that, unlike in June, many businesses will not be able to catch up on work and that the funeral will hit September GDP by 0.2 per cent.

As per the Bank of England (BoE) forecast, UK inflation which is already at a 40-year high will keep surging this year.

Also read |&nbsp;<a href="https://www.wionews.com/world/queen-elizabeth-iis-lookalike-set-to-give-up-job-after-34-years-out-of-respect-for-late-monarch-515327" hreflang="en">Queen Elizabeth II's lookalike set to give up job after 34 years out of respect for late monarch</a>

Rising energy and food costs combined with decades-high inflation will trigger a recession in the UK economy before the end of the year, BoE has predicted.

There is typically only one public holiday in Britain during the summer, but for the Jubilee celebrations, the holiday was doubled, and now the day off for the funeral means that millions of Britons get two extra public holidays.&nbsp;

(With inputs from agencies)

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Experts have warned that the UK's recession-threatened economy, which saw a rebound in July, may take a hit from the public holiday marking Queen Elizabeth II's funeral next week.

Experts have warned that the UK's recession-threatened economy, which saw a rebound in July, may take a hit from the public holiday marking Queen Elizabeth II's funeral next week. Following a 0.6 per cent drop in June, the nation's gross domestic product (GDP) saw an expansion of 0.2 per cent, reports AFP citing a statement by the Office for National Statistics. Experts have attributed the June dip to a public holiday for Queen's platinum jubilee, which marked her 70 years on the throne. Now another public holiday is scheduled next week for her funeral. Watch | Will Queen Elizabeth's Corgis be at her funeral? Well, royal watchers want them to be "The feeble 0.2-percent bounce back in July was driven by weak GDP in June due in part to the loss of working days from the Jubilee long weekend," notes KPMG UK chief economist Yael Selfin. He also expressed concern that the GDP in July remained below May levels, as per him this points to "overall contraction over the first two months of summer." "Looking ahead, the extra public holiday for the queen's funeral on September 19 has the potential to be more damaging for the economy than the extra day off for the Jubilee in June," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics. Also read | King Charles III makes first address to British parliament He predicts that, unlike in June, many businesses will not be able to catch up on work and that the funeral will hit September GDP by 0.2 per cent. As per the Bank of England (BoE) forecast, UK inflation which is already at a 40-year high will keep surging this year. Also read | Queen Elizabeth II's lookalike set to give up job after 34 years out of respect for late monarch Rising energy and food costs combined with decades-high inflation will trigger a recession in the UK economy before the end of the year, BoE has predicted. There is typically only one public holiday in Britain during the summer, but for the Jubilee celebrations, the holiday was doubled, and now the day off for the funeral means that millions of Britons get two extra public holidays. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Economic experts fear Queen Elizabeth II's funeral will further damage the UK's economy

Democratic US Senator Elizabeth Warren said on Sunday that she was very worried that the Federal Reserve was going to tip the nation's economy into recession and that interest rate hikes would put people out of work.

US Senator: Fed will tip US into recession

Is work from home coming to an end? Companies in India and around the world are asking employees to return to office. Experts say with a looming recession employees may lose the the bargaining power with regard to flexible working. Palki Sharma tells you more.

Gravitas: Are we nearing the end of work from home?

The ongoing conflict between Russia and Ukraine is affecting the global economies. The war in Ukraine has caused the prices of all sorts of products to rise. Not just gas, oil and fuel, but also foodstuffs. The conflict is also pushing European countries towards recession.

Fallout of Russia-Ukraine war: How the conflict is impacting global economies

On Monday, the dollar rose and US and European markets plummeted as concerns grew that efforts by central banks to rein in increasing consumer prices through inflation-busting interest rate hikes would undermine the world economy and trigger a recession.&nbsp;

The benchmark European STOXX index closed down 1%, and each of the three major Wall Street indices fell roughly 2% as a result of Russia's Gazprom announcing that it would stop supplying natural gas to Europe for three days at the end of the month.

As traders feared demand would be harmed by a slowdown, oil initially dropped 4%. Following hawkish indications from European Central Bank policymakers, the most recent disruption to the continent's energy supply heightened worries about the future of the continent's economy. Russian natural gas exports to Europe have decreased by over 75% since last year.&nbsp;

As the market prepared for a speech on Friday from Federal Reserve Chair Jerome Powell, who will address the Fed's goal to keep inflation low in Jackson Hole, Wyoming, the inversion of the yield curve on U.S. Treasuries widened—a recession indication.

Also Read:<a href="https://www.wionews.com/photos/in-pics-nasas-gigantic-sls-moon-rocket-a-practice-for-future-mars-mission-507987">&nbsp;In pics: NASA's gigantic SLS moon rocket, a 'practice' for future Mars mission</a>

The Canadian dollar was pushed over 1.30 versus the dollar as a result of the strengthening of the dollar, which also caused the euro to go below parity at 0.9932. Gold prices dropped to their lowest point in over four weeks as a result of the dollar's surge.&nbsp;

Instead of the larger likelihood of a modest 50 basis point boost, which was the market's estimate heading into the weekend, Fed funds futures are now pricing in a 54.5% chance of a 75 basis point hike by the Fed in September.&nbsp;

China stands out as an exception to the tightening trend, as the central bank cut certain key lending rates on Monday by 5 to 15 basis points in an effort to stabilise a faltering economy and a pressured property market.

(with inputs from agencies) 
&nbsp;

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On Monday, the dollar rose and US and European markets plummeted as concerns grew that efforts by central banks to rein in increasing consumer prices through inflation-busting interest rate hikes would undermine the world economy and trigger a recession.

On Monday, the dollar rose and US and European markets plummeted as concerns grew that efforts by central banks to rein in increasing consumer prices through inflation-busting interest rate hikes would undermine the world economy and trigger a recession. The benchmark European STOXX index closed down 1%, and each of the three major Wall Street indices fell roughly 2% as a result of Russia's Gazprom announcing that it would stop supplying natural gas to Europe for three days at the end of the month. As traders feared demand would be harmed by a slowdown, oil initially dropped 4%. Following hawkish indications from European Central Bank policymakers, the most recent disruption to the continent's energy supply heightened worries about the future of the continent's economy. Russian natural gas exports to Europe have decreased by over 75% since last year. As the market prepared for a speech on Friday from Federal Reserve Chair Jerome Powell, who will address the Fed's goal to keep inflation low in Jackson Hole, Wyoming, the inversion of the yield curve on U.S. Treasuries widened—a recession indication. Also Read: In pics: NASA's gigantic SLS moon rocket, a 'practice' for future Mars mission The Canadian dollar was pushed over 1.30 versus the dollar as a result of the strengthening of the dollar, which also caused the euro to go below parity at 0.9932. Gold prices dropped to their lowest point in over four weeks as a result of the dollar's surge. Instead of the larger likelihood of a modest 50 basis point boost, which was the market's estimate heading into the weekend, Fed funds futures are now pricing in a 54.5% chance of a 75 basis point hike by the Fed in September. China stands out as an exception to the tightening trend, as the central bank cut certain key lending rates on Monday by 5 to 15 basis points in an effort to stabilise a faltering economy and a pressured property market. (with inputs from agencies)

Shares tumble, dollar advances as inflation-busting interest rate hikes trigger recession

The 'lipstick index' says people buy more makeup when times get tough. Molly Gambhir tells you where it comes from and whether it can really predict a recession.

WION Fineprint: How your lipstick can predict the economy

Last week, Olaf Scholz was heckled and booed during an event. A survey found that only 25% of Germans believe Chancellor Scholz is doing a good job. With Germany staring at recession, Scholz has reached out to Canada. Palki Sharma tells you why it may not help.

Gravitas: Olaf Scholz loses public support in Germany

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