Ryanair’s Michael O’Leary: Worldwide inflation good for our growth October 25, 2022 The world’s surge in inflation rates will help Ryanair’s growth as people will not stop flying altogether, but will rely instead on budget airlines. “We think recession [and] price inflation is very good for our growth,” chief executive Michael O’Leary told journalists today in Lisbon. European countries have in fact been hit by soaring inflation [...]
This is a global, not a UK specific, economic slowdown October 24, 2022 Much attention has been devoted to the comings and goings at Number 10 Downing Street and the ailing economy in recent weeks, but the UK is not alone in wilting under the weight of soaring prices and interest rates. The eurozone economy, made up of the 19 countries that use the euro, is on course [...]
Week ahead: Drama in Westminster to grip City, but don’t forget about ECB October 23, 2022 The City’s attention will be gripped by the race to Number 10 this week, but there are some substantial economic announcements elsewhere in the pipeline that deserve a closer look. The European Central Bank (ECB), the monetary authority of the 19 countries using the euro, is expected to hike interest rates 75 basis points for [...]
German business costs accelerate at quickest pace on record September 20, 2022 German business costs have soared at the fastest rate ever in a sign that more financial woe is set to be heaped on consumers. Input prices, known as the producer price index, surged 45.8 per cent last month, according to Germany’s statistics agency. The record jump was driven by a near tripling in electricity prices. [...]
European Central Bank fires record rate rise shot to tame scorching inflation September 8, 2022 The European Central Bank (ECB) today hiked interest rates by the biggest amount since its creation in 1999 as it steps up its fight against a historic inflation surge on the Continent. President Christine Lagarde and co lifted borrowing costs in the bloc of 19 countries using the euro 75 basis points. The move takes [...]
European Central Bank could be forced into 75 basis point hike to tame record inflation August 31, 2022 The European Central Bank could be forced to hike interest rates by a historic 75 basis points next week to tame the largest inflation surge on record, economists bet today. The monetary authority governing the 19 countries using the euro may have to respond strongly or risk elevated prices being embedded into the bloc’s economy [...]
Recession looms over European economies grappling with soaring gas prices August 23, 2022 Recession is looming over Europe’s largest economies, driven by record inflation fuelled by high energy prices squeezing businesses and households, surveys published today showed. Consumers on the Continent are shrinking spending in response to record inflation sharply hitting their finances. Elevated gas costs, caused by Russia seemingly retaliating to western sanctions after the Ukraine invasion [...]
What the new interest rates mean for the City: ‘The UK fares worse than the EU and US’ August 13, 2022 The Bank of England’s decision to further raise interest rates from 1.25 per cent to 1.75 per cent and its two-year predictions means bad news for investors and UK residents alike. And the pain is far from over. A top City analyst expects this to further rise to 2.25 per cent in September. Other than [...]
A technical recession: How bad will it be? August 7, 2022 It is no surprise that US GDP growth is declining given the slowdown in consumer spending and domestic production recently. However, markets seem fraught with headline risk with the term ‘technical recession’ floating around. Analysts have pointed out the looming risk of a recession given the central bank’s aggressive tightening cycle while Fed chair Powell [...]
Scorching inflation hits eurozone retail sales in sign of looming recession August 3, 2022 Surging inflation eroding Europeans’ living standards is squeezing spending in the bloc, reveal new figures published today. Retail sales dropped 1.2 per cent in the 19 countries that use the euro in June, down from a 0.4 per cent rise in May, Eurostat said. The drop, which was worse than analysts’ forecasts, means retail sales [...]