Chinese authorities are being forced to close factories. But this time - it is not because of the pandemic. A new crisis could derail China's economy. Palki Sharma tells you about it.

Gravitas: Why factories in China are shutting down

Work from home could soon become a thing of the past as more and more companies call their employees back to the office. However, employees across the world say they prefer a hybrid working model. Molly Gambhir tells you more.

WION Fineprint: Recession fears could test work from home flexibility

Isaac Blake suffers from Allan-Herndon-Dudley syndrome, a rare brain development disorder that means he requires care 24 hours a day and specialist equipment. His carer, Maxine Rothchester, who has looked after him since he was eight months old, says rising fuel bills amid a cost of living crisis have put Isaac's life in danger.

Carers of 8-year-old Isaac Blake struggle to help the child

Deepening cost-of-living crisis pushes growing numbers of Britons to part with their pets. The Bank of England has warned Britain faces a long recession.

As cost-of-living surge, cash-strapped Britons abandon pets

US President Joe Biden on Wednesday claimed that the US economy had 'zero inflation' in the month of July, inviting seething criticism from Republicans across the board for trying to manipulate the numbers and present a rosy picture.&nbsp;

Prior to the signing of the historic Promise to Address Comprehensive Toxics (PACT) Act, Biden said, "Before I begin today, I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: Zero."

The President further added, “Here’s what that means: while the price of some things go up, went up last month, the price of other things went down by the same amount. The result? Zero inflation last month."

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JUST IN: 🇺🇸 President Joe Biden says "our economy had zero percent inflation in July." <a href="https://t.co/A4UBh4rFH4">pic.twitter.com/A4UBh4rFH4</a>
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Biden's version was propounded further by&nbsp;White House press secretary Karine Jean-Pierre who tweeted, "We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped."

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We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped.
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Read more:<a href="https://www.wionews.com/world/biden-signs-the-healthcare-bill-for-military-veterans-republicans-finally-come-on-board-505726">&nbsp;Biden signs the healthcare bill for military veterans; Republicans finally come on board</a>

While Biden may have been technically right, the overall picture was quite different. The Consumer Price Index report released on the same day revealed that the rate of inflation was down&nbsp;0.6 per cent from June's 9.1 per cent but it certainly did not mean that inflation had reached the magical 'zero' per cent mark.

The inflation rate for the month of July stood at 8.5 per cent, majorly due to a drop in fuel prices. However, if compared to year-on-year numbers, the inflation rate was still touching a 40-year record high and consumers were bearing the brunt of it.&nbsp;

“The all items less food and energy index rose 5.9 per cent over the last 12 months.&nbsp;The energy index increased 32.9 per cent for the 12 months ending July, a smaller increase than the 41.6 per cent increase for the period ending June. The food index increased 10.9 per cent over the last year, the largest 12-month increase since the period ending May 1979.” the official Consumer Price Index report read.&nbsp;

Republicans have a field day&nbsp;

As soon as Biden's comments went viral, the Republican lawmakers started taking potshots at the President and his 'torturous' math.

Republican leader Virginia Foxx from North Carolina stated, “The Biden Administration has a tortured relationship with math."

Meanwhile, Ted Cruz took to Twitter to state, "Ridiculous BS from the White House. There’s 8.5% inflation and basically everything anyone ever buys went up in price. This is just cruel gaslighting from the Biden admin."

As reported by WION,&nbsp;US has been facing its worst bout of economic slowdown in recent times. The economy has contracted for two successive quarters which suggests that a recession has set in place.&nbsp;A recent Bloomberg survey stated that there was a 40 per cent chance that the country will slip&nbsp;into a recession by next year.

Read more:&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>

Meanwhile, to counter inflation, the Biden administration has brought the ambitious $740 billion&nbsp;Inflation Reduction Act. However, the bill is yet to be approved in the House.&nbsp;

(With inputs from agencies) 
 
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&nbsp;

US President Joe Biden on Wednesday claimed that the US economy had 'zero inflation' in the month of July, inviting seething criticism from Republicans across the board for trying to manipulate the numbers and present a rosy picture.

US President Joe Biden on Wednesday claimed that the US economy had 'zero inflation' in the month of July, inviting seething criticism from Republicans across the board for trying to manipulate the numbers and present a rosy picture. Prior to the signing of the historic Promise to Address Comprehensive Toxics (PACT) Act, Biden said, "Before I begin today, I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: Zero." The President further added, “Here’s what that means: while the price of some things go up, went up last month, the price of other things went down by the same amount. The result? Zero inflation last month." JUST IN: 🇺🇸 President Joe Biden says "our economy had zero percent inflation in July." pic.twitter.com/A4UBh4rFH4 — Watcher.Guru (@WatcherGuru) August 10, 2022 × Biden's version was propounded further by White House press secretary Karine Jean-Pierre who tweeted, "We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped." We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped. — Karine Jean-Pierre (@PressSec) August 10, 2022 × Read more: Biden signs the healthcare bill for military veterans; Republicans finally come on board While Biden may have been technically right, the overall picture was quite different. The Consumer Price Index report released on the same day revealed that the rate of inflation was down 0.6 per cent from June's 9.1 per cent but it certainly did not mean that inflation had reached the magical 'zero' per cent mark. The inflation rate for the month of July stood at 8.5 per cent, majorly due to a drop in fuel prices. However, if compared to year-on-year numbers, the inflation rate was still touching a 40-year record high and consumers were bearing the brunt of it. “The all items less food and energy index rose 5.9 per cent over the last 12 months. The energy index increased 32.9 per cent for the 12 months ending July, a smaller increase than the 41.6 per cent increase for the period ending June. The food index increased 10.9 per cent over the last year, the largest 12-month increase since the period ending May 1979.” the official Consumer Price Index report read. Republicans have a field day As soon as Biden's comments went viral, the Republican lawmakers started taking potshots at the President and his 'torturous' math. Republican leader Virginia Foxx from North Carolina stated, “The Biden Administration has a tortured relationship with math." Meanwhile, Ted Cruz took to Twitter to state, "Ridiculous BS from the White House. There’s 8.5% inflation and basically everything anyone ever buys went up in price. This is just cruel gaslighting from the Biden admin." As reported by WION, US has been facing its worst bout of economic slowdown in recent times. The economy has contracted for two successive quarters which suggests that a recession has set in place. A recent Bloomberg survey stated that there was a 40 per cent chance that the country will slip into a recession by next year. Read more: Zero probability of recession in India while US has a 40 per cent chance: Study Meanwhile, to counter inflation, the Biden administration has brought the ambitious $740 billion Inflation Reduction Act. However, the bill is yet to be approved in the House. (With inputs from agencies) WATCH WION LIVE HERE:

President Biden claims US had ‘zero per cent inflation’ in July; gets trolled by Republicans

Amid a global pandemic, a war between two nations and a breakdown in the supply chain system resulting in sky-high inflation rates, most countries and their economies are in the doldrums.

Amid a global pandemic, a war between two nations and a breakdown in the supply chain system resulting in sky-high inflation rates, most countries and their economies are in the doldrums. Industry experts have been fuelling fears that a global recession is just around the corner. Now, a Bloomberg survey has attempted to gauge the percentage probabilities of various countries slipping into recession. While the survey results may be cheerful for a country like India, it is not so much for Sri Lanka, the US or even the whole of Europe. According to the survey, the island nation of Sri Lanka is at the precipice of recession. There is an 85 per cent probability that Sri Lanka slips into recession, as early as next year. The sharp tumble in fortunes is a marked departure from the 33 per cent chance recorded last year. Contrary to Sri Lanka, its neighbouring country of India has a zero probability of facing a severe economic slump, according to the economists involved in the research. Despite the Indian rupee touching a historical low against the US dollar, the Reserve Bank of India (RBI) has been able to keep the economy in good shape by increasing lending rates or repo rates by 90 basis points cumulatively in the various monetary meetings. What about US? However, the US has not fared well in the survey as economists believe that there is a 40 per cent chance of the country slipping into a recession by next year. It is pertinent to note that the inflation rate in the US increased by a whopping 8.6 per cent in May 2022, reaching a forty-year high. Nearly every US-based brokerage firm is of the same view that the US can easily slip into recession if course-corrective measures are not employed. Read More: Major economies to enter recession in the next 12 months: Report As for other countries, the survey shows that China, Taiwan and Australia have a 20 per cent chance of slipping into recession. Meanwhile, New Zealand has a 33 per cent chance. On a whole, Asia is still finely balanced with only a 20-25 per cent probability of a recession. However, with the Russia Ukraine crisis affecting the entire landscape of Europe, the probability meter has crept up to 55 per cent for the continent. Read More: Recession in Germany? Business confidence slumps to two-year low (With inputs from agencies) WATCH WION LIVE HERE:

Zero probability of recession in India while US has a 40 per cent chance: Study

The Bank of England (BoE) raised interest rates by the most in 25 years on August 4, despite warning that a long recession is on its way. It has raised the interest rates by 0.5 points also known as 50 basis points, highest interest rate rise since 1997 amid looming recession.

Bank of England raises rates by most in 25 years even as long recession looms

Taiwan and China are economic powerhouses integrated deeply into the world economy. A war between the two would cause global supply chains to collapse. Palki Sharma decodes the economic fall-out of a possible Chinese invasion.

Gravitas: Recession inevitable if China invades Taiwan?

Shrinking economy, soaring inflation Bank of England sounds alarm Is the UK hurtling towards a recession?

The Full Context: Recession alarm bells ring in UK

Hong Kong has slipped back into a technical recession, new government figures showed on Monday. After falling 3.9 percent year-on-year in the first quarter of 2022, the city’s GDP on Monday reported another decline in the second quarter.

WION Dispatch: Hong Kong’s economy is slipping into a technical recession

As per a flash estimate from Eurostat, the European Union's statistical agency, annual inflation in the euro area is predicted to reach 8.9 per cent in July 2022, up from 8.6 per cent in June. The euro zone's manufacturing activity shrank last month, with factories being forced to stockpile unsold items as a result of weak demand, according to data released on Monday. This has raised concerns that the region could enter a recession.&nbsp;Despite weaker overall sentiment due to concerns about an economic slowdown, European stocks had their highest monthly gain on Friday (July 29) since November 2020 thanks to solid earnings from corporate Europe.

Also read |&nbsp;WION Dispatch: Eurozone inflation at record high; consumer prices jump 8.9% in July

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As inflation, the crisis in Ukraine, and the pandemic took their toll, retailers in Germany, the powerhouse of the European economy, saw the sharpest decline in their year-over-year sales in nearly three decades at the end of the first half of 2022, according to data.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-halts-gas-supply-to-latvia-following-deadly-prison-attack-502043" hreflang="en">Russia halts gas supply to Latvia following deadly prison attack</a>

In China too home sales of the top 100 developers fell in July, a sign that the growing mortgage boycott issue plaguing the nation has further undermined consumer confidence.

Despite government efforts to promote purchases, the demand remained flat amid an economic slowdown. According to preliminary data provided by China Real Estate Information Corp., combined contract sales decreased 39.7 per cent from a year earlier to 523.1 billion yuan ($78 billion).

Also read |&nbsp;<a href="https://www.wionews.com/world/despite-gas-crisis-and-inflation-surge-eurozone-economy-grows-faster-than-expected-501880" hreflang="en">Despite gas crisis, inflation surge, Eurozone economy grows faster than expected</a>

Hong Kong too is battling the effects of inflation. According to fresh official data released on Monday, Hong Kong has once again entered a technical recession as a result of the city's prolonged commitment to stringent coronavirus regulations, rising interest rates, and weakening international trade.

The city's GDP again declined in the second quarter of 2022, although by a smaller margin of 1.4 per cent, according to preliminary estimates issued by the Census and Statistics Department. This follows a year-over-year fall of 3.9 per cent in the first quarter of 2022.

(With inputs from agencies)

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As per a flash estimate from Eurostat, the European Union's statistical agency, annual inflation in the euro area is predicted to reach 8.9 per cent in July 2022, up from 8.

As per a flash estimate from Eurostat, the European Union's statistical agency, annual inflation in the euro area is predicted to reach 8.9 per cent in July 2022, up from 8.6 per cent in June. The euro zone's manufacturing activity shrank last month, with factories being forced to stockpile unsold items as a result of weak demand, according to data released on Monday. This has raised concerns that the region could enter a recession. Despite weaker overall sentiment due to concerns about an economic slowdown, European stocks had their highest monthly gain on Friday (July 29) since November 2020 thanks to solid earnings from corporate Europe. Also read | WION Dispatch: Eurozone inflation at record high; consumer prices jump 8.9% in July As inflation, the crisis in Ukraine, and the pandemic took their toll, retailers in Germany, the powerhouse of the European economy, saw the sharpest decline in their year-over-year sales in nearly three decades at the end of the first half of 2022, according to data. Also read | Russia halts gas supply to Latvia following deadly prison attack In China too home sales of the top 100 developers fell in July, a sign that the growing mortgage boycott issue plaguing the nation has further undermined consumer confidence. Despite government efforts to promote purchases, the demand remained flat amid an economic slowdown. According to preliminary data provided by China Real Estate Information Corp., combined contract sales decreased 39.7 per cent from a year earlier to 523.1 billion yuan ($78 billion). Also read | Despite gas crisis, inflation surge, Eurozone economy grows faster than expected Hong Kong too is battling the effects of inflation. According to fresh official data released on Monday, Hong Kong has once again entered a technical recession as a result of the city's prolonged commitment to stringent coronavirus regulations, rising interest rates, and weakening international trade. The city's GDP again declined in the second quarter of 2022, although by a smaller margin of 1.4 per cent, according to preliminary estimates issued by the Census and Statistics Department. This follows a year-over-year fall of 3.9 per cent in the first quarter of 2022. (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.

Recession fears haunt Eurozone; China witnesses slump in house sales; Hong Kong enters technical recession

For two consecutive quarters now - the American economy has contracted. For many economists this would mean the beginning of a recession. But American leaders argue - the US is not in a recession. Who is right? Palki Sharma tells you.

Gravitas: Is America in a recession?

The world’s largest economy has contracted for a second consecutive quarter. The US recorded a 0.9% decline in output on an annualized basis between April and June.

Recession fears deepen as US economy contracts for second consecutive quarter

US recession fears are playing on the minds of all sectors of the world economy, India's shining IT sector is no exception. though it has handled Covid pandemic well, the industry still has multiple challenges ahead.

US recession fears don't look grave: Tech Mahindra

The US economy has contracted for the second consecutive quarter, a development that in many other nations would be regarded as an economic recession. In contrast, the US uses extra information to make that choice. But the shrinkage, which occurred at an annual pace of 0.9 percent in the three months leading up to July, has received a lot of attention as economic worries intensify.

The cost of food, gas, and other necessities is rising at a rate not seen since 1981.

Fears are growing that a recession is on the horizon, if it hasn't already, as the US central bank aggressively increases borrowing prices to try to cool the economy and reduce pricing pressures.

US President Joe Biden has attempted to persuade the public that the economy is still in good shape by pointing out that the unemployment rate remains at 3.6 percent and that hiring has remained strong in the face of declining public confidence.

The release of the report is crucial. Under the pressure of severe inflation and rising borrowing prices, consumers and companies have been struggling. In an effort to combat the worst inflation outbreak in four decades, the Federal Reserve hiked its benchmark interest rate by a hefty three-quarters of a point on Wednesday. The famously challenging "soft landing" that the Fed is aiming for is an economic downturn that manages to contain skyrocketing prices without sparking a recession. 
 
Watch: US GDP shrinks by 1.4% in first quarter

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Consumer confidence has been damaged by the inflation increase and the public's anxiety over a potential recession, and the economy is currently delivering frustratingly conflicting signals as a result. Additionally, as the November midterm elections draw closer, the unhappiness of the populace has lowered President Joe Biden's public popularity ratings and raised the possibility that the Democrats may lose control of the House of Representatives and the Senate.

Consumer spending is still increasing. However, Americans are becoming less confident: According to the Conference Board, a research organisation, their forecast for the state of the economy six months from now has dropped to its lowest level since 2013.

(With inputs from agencies) 
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The US economy has contracted for the second consecutive quarter, a development that in many other nations would be regarded as an economic recession. In contrast, the US uses extra information to make that choice.

The US economy has contracted for the second consecutive quarter, a development that in many other nations would be regarded as an economic recession. In contrast, the US uses extra information to make that choice. But the shrinkage, which occurred at an annual pace of 0.9 percent in the three months leading up to July, has received a lot of attention as economic worries intensify. The cost of food, gas, and other necessities is rising at a rate not seen since 1981. Fears are growing that a recession is on the horizon, if it hasn't already, as the US central bank aggressively increases borrowing prices to try to cool the economy and reduce pricing pressures. US President Joe Biden has attempted to persuade the public that the economy is still in good shape by pointing out that the unemployment rate remains at 3.6 percent and that hiring has remained strong in the face of declining public confidence. The release of the report is crucial. Under the pressure of severe inflation and rising borrowing prices, consumers and companies have been struggling. In an effort to combat the worst inflation outbreak in four decades, the Federal Reserve hiked its benchmark interest rate by a hefty three-quarters of a point on Wednesday. The famously challenging "soft landing" that the Fed is aiming for is an economic downturn that manages to contain skyrocketing prices without sparking a recession. Watch: US GDP shrinks by 1.4% in first quarter Consumer confidence has been damaged by the inflation increase and the public's anxiety over a potential recession, and the economy is currently delivering frustratingly conflicting signals as a result. Additionally, as the November midterm elections draw closer, the unhappiness of the populace has lowered President Joe Biden's public popularity ratings and raised the possibility that the Democrats may lose control of the House of Representatives and the Senate. Consumer spending is still increasing. However, Americans are becoming less confident: According to the Conference Board, a research organisation, their forecast for the state of the economy six months from now has dropped to its lowest level since 2013. (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.

Fueling recession fears, the US economy shrank again in second quarter

The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation.

In an update of the World Economic Outlook, the IMF. said that economic prospects had darkened significantly in recent months as a result of the war in Ukraine, inflation and a resurgent pandemic.

The agency warned that if these threats continue to intensify, the global economy could face one of its weakest years since 1970s, when a period of intense stagflation gripped the globe.

“The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist,&nbsp;wrote in a blog post.

&nbsp;Put simply, the outlook for the global economy is “increasingly gloomy,” he said.

The Washington-based institution said that problems in China, EU and the US had triggered fall of global output in the second quarter of this year— the first contraction since the start of the Covid pandemic.

“Higher than expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine,” he said.

By the fourth quarter of 2022, the IMF said that was forecasting global inflation of 8.3 per cent, up from its April estimate of 6.9 per cent.

The World Bank, too, had made a similar prediction in June for the global economy, saying that the Ukraine war and the COVID-19 pandemic have continued to hinder global economic growth.

Also read |&nbsp;<a href="https://www.wionews.com/world/sp-predicts-one-third-decline-in-chinas-real-estate-sales-as-situation-worsens-501041" hreflang="en">S&amp;P&nbsp;predicts&nbsp;one-third decline in China's real estate sales as situation worsens</a>

"Things have gotten, unfortunately, much worse than what we expected," World Bank Prospects Group Director Ayhan Kose&nbsp;said in June.

"We were expecting a slowdown. That slowdown is much more pronounced now. Growth is going to go down to 2.9 per cent, at the global level. Last year it was 5.7 per cent."

Also read |&nbsp;<a href="https://www.wionews.com/technology/microsofts-earnings-suffer-as-computer-sales-decline-500998" hreflang="en">Microsoft’s earnings suffer as computer sales decline</a>

The IMF said that the recession in Russia this year was still significant and that its economic output could deteriorate further next year as the impact of the sanctions are intensified.

(With inputs from agencies)

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The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation.

The International Monetary Fund (IMF) has said that the world economy is "teetering" on the edge of a global recession. The remarks come as the world’s three largest economies —the United States, China and Europe— are witnessing a slowdown and spiralling inflation. In an update of the World Economic Outlook, the IMF. said that economic prospects had darkened significantly in recent months as a result of the war in Ukraine, inflation and a resurgent pandemic. The agency warned that if these threats continue to intensify, the global economy could face one of its weakest years since 1970s, when a period of intense stagflation gripped the globe. “The world may soon be teetering on the edge of a global recession, only two years after the last one,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote in a blog post. Put simply, the outlook for the global economy is “increasingly gloomy,” he said. The Washington-based institution said that problems in China, EU and the US had triggered fall of global output in the second quarter of this year— the first contraction since the start of the Covid pandemic. “Higher than expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine,” he said. By the fourth quarter of 2022, the IMF said that was forecasting global inflation of 8.3 per cent, up from its April estimate of 6.9 per cent. The World Bank, too, had made a similar prediction in June for the global economy, saying that the Ukraine war and the COVID-19 pandemic have continued to hinder global economic growth. Also read | S&P predicts one-third decline in China's real estate sales as situation worsens "Things have gotten, unfortunately, much worse than what we expected," World Bank Prospects Group Director Ayhan Kose said in June. "We were expecting a slowdown. That slowdown is much more pronounced now. Growth is going to go down to 2.9 per cent, at the global level. Last year it was 5.7 per cent." Also read | Microsoft’s earnings suffer as computer sales decline The IMF said that the recession in Russia this year was still significant and that its economic output could deteriorate further next year as the impact of the sanctions are intensified. (With inputs from agencies) WATCH WION LIVE HERE

‘Global economy teetering on edge of recession’: IMF paints a gloomy picture

Recent survey says India has zero probability of slipping into recession. Unlike other economies, India has largely remained resilient to economic headwinds as compared to Europe and the US but it has its own share of challenges.

India has zero probability of slipping into recession: Survey

Russia is waging an economic war on Europe. Moscow has made drastic cuts to European gas supplies. They have fallen by 80%. Palki Sharma tells you how Russian cuts could push Europe into a recession.

Gravitas: Gas War: Russia cuts Europe's gas supply drastically

A group of economists say there is a "zero percent chance" that India will face a recession. What's working for the Indian economy? Palki Sharma brings you an assessment.

Gravitas: India could escape a global recession wave

The IMF has slashed its global growth forecasts for 2022-2023 and raised its projections for inflation, warning that the risks to the economic outlook are overwhelmingly tilted to the downside.

IMF: Ukraine war pushing world economy to the brink of recession

Taking note of surging inflation and severe slowdowns in the United States and China, the IMF downgrades its outlook for the global economy this year and the next. Will the slowdown in U.S. and China spill over to other economies? Will recession soon be a reality for the world?

WION Fineprint: American & Chinese economies on the edge?

US Treasury Secretary Janet Yellen on Sunday downplayed fears of a possible recession Sunday but admitted an economic slowdown is occurring.

US Treasury Secretary Janet Yellen downplays recession fears

The world is moving toward a recession. IMF chief warned that the outlook for the global economy has darkened significantly, which means output and earnings are falling. Then, how are some countries experiencing job growth?

How are some countries experiencing 'job miracle' when world is moving towards recession?

In a world which is still feeling the after-effects of a deadly global pandemic and simultaneously witnessing a geopolitical modern war unfold; investors everywhere are assessing the long-term consequences of these events.

In a world which is still feeling the after-effects of a deadly global pandemic and simultaneously witnessing a geopolitical modern war unfold; investors everywhere are assessing the long-term consequences of these events. The concoction of the aforementioned circumstances has led experts to cast a warning that we stand at the cusp of a global recession, primarily due to rising inflation and the destruction of supply chains. Now, three Wall Street leaders have laid down three warning signs that could be the precursor to an economic downturn. One, that is expected to dwarf 'The Great Recession' of 2008. A deadlier future pandemic Sam Bankman-Fried, Co-founder, FTX believes that the world is not prepared to handle yet another future pandemic. Especially, one, that is much more deadly and has a higher fatality rate. COVID-19 showed the absolute worst of humankind as people fought over trivial matters and remained divided on the best way to fight the invisible enemy. "There was no coordination in terms of what the response should be. If you look at where we are today, we have not started putting any of those processes in place that we should have had last time," said Sam. Sam considers that Covid has had a massive negative impact on the world economy. Sky-high inflation, rising interest rates and limping stock market are a few of the indicators that our Covid mitigation programmes did more harm than good. Thus, if a future pandemic was to arrive just now, the economic order of the world will go for a toss as we are not remotely prepared. Read More: Major economies to enter recession in the next 12 months: Report Labour shortage Meanwhile, Abby Joseph Cohen, a Columbia Business School professor and former senior investment strategist at Goldman Sachs is of the view that a reduction in the labour force, whether it be the service sector or research and development field, could cause the next big financial catastrophe. Citing the example of America, Cohen remarked that the country was built on the foundations laid by the immigrants. These foreigners came to American soil, made it their own and contributed to the growth story, which allowed America's GDP to dwarf that of nearly every nation on the planet, for close to a century. However, the recent trend of not being welcome enough towards immigrants had had a negative effect. Not only the economy is shrinking in real time with high inflation, but the lack of labour strength also means that there will be no future scientists, doctors or engineers coming to the fore. Cohen is worried that the pipeline is not being created. The fabled 'American Dream' is fading as successive generations are finding it extremely hard to do better than their predecessors. The wages have not risen, and the median income has not kept up with inflation. Ultimately, the middle class is finding it difficult to maintain stability. And if the health of the middle class deteriorates, a country can fall apart on seams, says Cohen. "What has happened is that this rise in inflation has pulled apart the curtains. Now we see much more clearly where these problems are and where the issues are." Deglobalisation of the world order Lastly, Ken Moelis, Founder and CEO, Moelis & Co. is of the view that deglobalisation of the planet, which has already started, may affect the countries that do not have ample resources to sustain on their own. Earlier, a country like Germany had outsourced everything, right from its military to the USA to financial management to the EU and energy supply as well as end market to Russia and China respectively. However, in the immediate aftermath of the Russia-Ukraine crisis and a sluggish Chinese economy, Berlin has been seen huffing and puffing. While Germany still may have the resources to get back on its feet, owing to its developed nation status, other small nations, particularly the African nations, may not have the same luxury. These countries have grown in a major way due to globalisation. However, if the cycle stops, they may soon go bust. "Each country will move to protect their own citizens. And as a result, they might deglobalize ahead of you," stated Ken. (With inputs from agencies) WATCH WION LIVE HERE:

Global recession incoming? Three Wall Street leaders enlist possible reasons for the economic doomsday

Finance ministers of the G20 are meeting in Bali amid fears of a global recession. Their last meeting in April ended in failure after western leaders walked out to protest Russia's participation. Will this meeting be any different? Palki Sharma tells you.

Gravitas: G20 finance ministers huddle amid recession fears

Amid recession fears and a weak Chinese market, Copper has nosedived to its lowest level in the last twenty months. The important red-metal element, used in almost everything from automobiles to smartphones to wires to home appliances has dropped below $7,000 a tonne for the first time since November 2020.

Amid recession fears and a weak Chinese market, Copper has nosedived to its lowest level in the last twenty months. The important red-metal element, used in almost everything from automobiles to smartphones to wires to home appliances has dropped below $7,000 a tonne for the first time since November 2020. The precarious tumble of the metal is evident from its stock market performance as well. At the London Metal Exchange, the metal is already down 25 per cent. Reportedly, the metal is expected to rival the decline it suffered at the peak of 'The Great Recession' of 2008. The red metal and its production, as well as supply, have been obstructed due to the slowdown in the Chinese economy, which on Friday grew at a pace of 0.4 per cent in the first quarter of the year. China, the world's largest metal consumer is struggling It is pertinent to note that China is the largest metal consumer in the world. Owing to Xi Jinping's 'Zero-Covid tolerance' scheme where entire cities have been closed due to a small number of cases, China's economy has been drastically hit. This means the use of Copper has reduced significantly. Read More: China's economic growth drops to 0.4 per cent amid draconian lockdown measures and severe heatwave Pair it up with surging energy costs weighing heavy on Europe and the US facing its worst-ever bout of inflation and the situation becomes worrisome. Copper making deep drops in the market is not a recent phenomenon either. When the pandemic hit the globe in 2020, the precious metal slipped nearly 19.8 per cent in Q1. Goldman Sachs has only added to the gloom by remarking that the metal is expected to slip below the $6,700 mark in the coming three months as China continues to remain sluggish in its economic recovery. (With inputs from agencies)

Copper nosedives to its 20-month low; expected to tumble even more

Recession is impacting industries and countries across the globe. India is an exporter for small cars for MNCs including Suzuki motor of Japan. How is the recession phase impacting sector. Today we are joined by Shashank Srivastava, senior ED, Maruti Suzuki, India for more insights on this.

Recession fears and Indian-based firms | Shashank Srivastava Exclusive

Google parent Alphabet CEO Sundar Pichai has reportedly told its employees that the tech giant will be “slowing down the pace of hiring for the rest of the year”. The comments come as several analysts have predicted that the US will be hit by the recession by the end of this year.

Pichai has said that the company will have to “be more entrepreneurial” and work with “greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days”, according to an internal memo cited by The Verge.

According to the memo, Pichai said that the company “isn’t freezing hiring entirely; it’ll still hire engineering, technical and other critical roles”, but the pullback, he added, will mean “pausing development and re-deploying resources to higher priority areas”.

"For the balance of 2022 and 2023, we'll focus our hiring on engineering, technical and other critical roles, and make sure the great talent we do hire is aligned with our long-term priorities," he reportedly wrote in the memo.

Pichai also indicated that the company will redeploy resources to higher priority areas and pause ongoing projects during this period.

“Making the company more efficient is up to all of us — we’ll be creating more ways for you all to engage and share ideas to help, so stay tuned,” he said.

Notably, Google isn’t the only company that has paused hiring people. Uber has said&nbsp;it’ll have to be “hardcore about costs,” while Meta sent a memo to employees&nbsp;warning of “serious times” and fierce headwinds after&nbsp;implementing hiring freezes&nbsp;for some teams,

Spotify also announced plans to slow hiring, and other companies, like Twitter, and Netflix, have recently decided to lay off employees.

(With inputs from agencies)

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Google parent Alphabet CEO Sundar Pichai has reportedly told its employees that the tech giant will be “slowing down the pace of hiring for the rest of the year”.

Google parent Alphabet CEO Sundar Pichai has reportedly told its employees that the tech giant will be “slowing down the pace of hiring for the rest of the year”. The comments come as several analysts have predicted that the US will be hit by the recession by the end of this year. Pichai has said that the company will have to “be more entrepreneurial” and work with “greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days”, according to an internal memo cited by The Verge. According to the memo, Pichai said that the company “isn’t freezing hiring entirely; it’ll still hire engineering, technical and other critical roles”, but the pullback, he added, will mean “pausing development and re-deploying resources to higher priority areas”. "For the balance of 2022 and 2023, we'll focus our hiring on engineering, technical and other critical roles, and make sure the great talent we do hire is aligned with our long-term priorities," he reportedly wrote in the memo. Pichai also indicated that the company will redeploy resources to higher priority areas and pause ongoing projects during this period. “Making the company more efficient is up to all of us — we’ll be creating more ways for you all to engage and share ideas to help, so stay tuned,” he said. Notably, Google isn’t the only company that has paused hiring people. Uber has said it’ll have to be “hardcore about costs,” while Meta sent a memo to employees warning of “serious times” and fierce headwinds after implementing hiring freezes for some teams, Spotify also announced plans to slow hiring, and other companies, like Twitter, and Netflix, have recently decided to lay off employees. (With inputs from agencies) WATCH WION LIVE HERE

Google to slow down hiring, says Sundar Pichai in a memo to staff

The euro struck parity with the dollar for the first time in nearly 20 years on Tuesday as a cut in Russian gas supplies to Europe heightened fears of a recession in the eurozone. Molly Gambhir tells you more.

WION Fineprint | Eurozone recession fears mount as Euro strikes dollar parity

Many major economies will hit recessions over the next 12 months amid a rise in the cost of living and tightening government policies, Nomura Holdings Inc has said in a report, according to Bloomberg.

The brokerage firm expects the EU, the UK, Japan, South Korea, Australia, Canada and the US to enter into a recession, thereby pushing the global economy into a synchronized growth slowdown, Rob Subbaraman and Si Ying Toh at Nomura said in a research note.

They said that the central banks are likely to err by tightening the monetary policy in a bid to rein in inflation at the risk of sacrificing growth before cutting rates in 2023.

“Increasing signs that the world economy is entering a synchronized growth slowdown, meaning countries can no longer rely on a rebound in exports for growth, have also prompted us to forecast multiple recessions,” they wrote.

Nomura forecasts that the depth of recession will vary among nations. In the US, a shallow but long recession of five quarters starting from the final quarter of this year. In Europe, the slump could be much deeper if Russia&nbsp;entirely cuts off gas to Europe, the economists said.&nbsp;

Watch |&nbsp;Gravitas: Several major economies stare at a recession

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The Japanese financial services firm Nomura sees both the US and the euro area economies contracting 1 per cent in 2023.&nbsp;

For mid-sized economies, including Australia, Canada and&nbsp;South Korea, there’s a risk of deeper-than-forecast recessions if interest rate hikes&nbsp;trigger housing busts, they said.

Japan is forecast to have the mildest recession of the group owing to ongoing policy support and its delayed economic reopening, they added.

China is an outlier as its economy recovering with the help of accommodative policies, though it remains at risk of renewed lockdowns as long as Beijing sticks to its zero-Covid strategy, they said.

(With inputs from agencies)

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Many major economies will hit recessions over the next 12 months amid a rise in the cost of living and tightening government policies, Nomura Holdings Inc has said in a report, according to Bloomberg.

Many major economies will hit recessions over the next 12 months amid a rise in the cost of living and tightening government policies, Nomura Holdings Inc has said in a report, according to Bloomberg. The brokerage firm expects the EU, the UK, Japan, South Korea, Australia, Canada and the US to enter into a recession, thereby pushing the global economy into a synchronized growth slowdown, Rob Subbaraman and Si Ying Toh at Nomura said in a research note. They said that the central banks are likely to err by tightening the monetary policy in a bid to rein in inflation at the risk of sacrificing growth before cutting rates in 2023. “Increasing signs that the world economy is entering a synchronized growth slowdown, meaning countries can no longer rely on a rebound in exports for growth, have also prompted us to forecast multiple recessions,” they wrote. Nomura forecasts that the depth of recession will vary among nations. In the US, a shallow but long recession of five quarters starting from the final quarter of this year. In Europe, the slump could be much deeper if Russia entirely cuts off gas to Europe, the economists said. Watch | Gravitas: Several major economies stare at a recession The Japanese financial services firm Nomura sees both the US and the euro area economies contracting 1 per cent in 2023. For mid-sized economies, including Australia, Canada and South Korea, there’s a risk of deeper-than-forecast recessions if interest rate hikes trigger housing busts, they said. Japan is forecast to have the mildest recession of the group owing to ongoing policy support and its delayed economic reopening, they added. China is an outlier as its economy recovering with the help of accommodative policies, though it remains at risk of renewed lockdowns as long as Beijing sticks to its zero-Covid strategy, they said. (With inputs from agencies) WATCH WION LIVE HERE

Major economies to enter recession in the next 12 months: Report

Experts are predicting a "procession of recessions" within one year. The economies of several major countries could contract in the coming months. Palki Sharma tells you why the global economy needs to brace for impact.

Gravitas: Several major economies stare at a recession

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