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The most important news of the day
Gazprom, the monopoly on Russia’s state-backed gas pipeline, has accused Ukraine of taking gas intended for Moldova from lines that pass through the country and warned it could cut supplies to Western Europe from November 28. Gas prices rose in response this morning.
Lax policies and confusing signals from Beijing have fueled a growing Covid outbreak across China, with swathes of the population once again locked down. Apple iPhone factory workers clash with police at Foxconn’s Zhengzhou factory in protest of bonuses.
The UK Supreme Court has ruled that the Scottish government does not have the power to hold a referendum on independence without Westminster’s approval, scuttling Edinburgh’s plan to vote next year. Scotland’s first female minister, Nicola Sturgeon, has said she will make the next UK general election a “de facto referendum” on independence.
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A new batch of surveys and forecasts has highlighted the challenges ahead for both the global economy and business amid rising inflationary pressures and a full-blown energy crisis.
Business activity in the eurozone contracted for the fifth consecutive month in November, according to the closely watched PMI from S&P Global, recording a score of 47.8, the 50-point cut-off between contraction and expansion. Although the overall result was another sign that block production will contract this winter, there was some encouraging news about supply chain issues and easing cost pressures.
However, there were few signs of optimism in a separate survey from the European Roundtable of Industry. It showed that a third of the largest industrial companies expected to stop or reduce their operations due to record energy prices and slowing demand.
Companies have also expressed concern that incentives in the $369 billion Green Technology Initiative (also known as the Inflation Control Act) could divert investment away from Europe.
The UK’s PMI score was 48.3, although widely unchanged from October, the fourth consecutive reading below 50, with new orders falling at the fastest pace in nearly two years, pointing to a deepening recession. Respondents cited a cost-of-living crisis, the war in Ukraine, growing export challenges, rising borrowing costs, and fiscal tightening.
Many participants mentioned problems related to Brexit. “The veil of Covid, almost fully lifted, has revealed the challenges still faced by exporters reeling from the challenges of customs, paperwork and other Brexit restrictions that put customers off overseas,” said John Glenn, chief economist at Cibes.
Manufacturing company Johnson Matthey is the country’s latest casualty of soaring inflation and energy prices, today announcing cuts of up to 15 per cent in senior management jobs.
The UK PMI result follows yesterday’s forecast from the Organization for Economic Co-operation and Development which said the country would be the worst performer in the G-20 excluding Russia over the next two years, with GDP falling 0.4 percent in 2023.
The headline US PMI reading fell from 48.2 to a three-month low of 46.3 in November, with output falling across both manufacturing and services as demand hit by inflation, rising borrowing costs and economic uncertainty, suggesting the economy is contracting at an annual rate. 1 percent.
The Organization for Economic Co-operation and Development expects growth of just 0.5 percent in the United States next year and a global expansion of 2.2 percent, driven by more resilient emerging economies.
Need to know: UK and European economy
UK public borrowing It rose in October as government measures to help households and businesses with energy prices took effect. The Treasury had to save the Bank of England from its first losses in its quantitative easing program since 2009, caused by the rise in official interest rates.
Brussels has asked EU member states to speed up their spending over the course of the year energy crisisarguing that less than 30 percent of support measures in the bloc were “well targeted”, the Europe Express newsletter (for Premium subscribers) reports.
Need to know: The global economy
New Zealand, which has become a “canary in the coal mine” due to inflationary pressures, increased the benchmark interest rate by 0.75 percentage points. The Reserve Bank of New Zealand said further monetary tightening is needed to bring inflation back to its target range, even as other economies begin to contract.
Kingdom Saudi Arabia Investing in solar and wind energy could help the kingdom meet its emissions targets — as well as pump more crude oil to sell to others. Martin Wolf says global policymakers need to work out how to accelerate the transition to green energy.
argentina, A major player in the global food market, it accounts for 8 percent of wheat exports, 18.5 percent of corn and 40 percent of soybean oil and meals, and has been hit hard by drought. Farmers are in despair at the lack of help from the government.
Party of the outgoing Brazilian president Jair Bolsonaro He contested the result of a narrowly lost run-off last month, calling for ballots to be canceled from allegedly malfunctioning electronic voting machines.
Hong Kong, stricken by the coronavirus, has lost control Crown luxury shopping to New York. Manhattan’s Upper Fifth Avenue is now the world’s most expensive street for luxury shopping, a new survey reports, with Hong Kong’s Tsim Sha Tsui district in Kowloon in second place and Milan’s Via Monte Napoleon in third.
The US Federal Reserve Minutes of the November policy meeting will be posted at 2pm EST / 7pm London. This is expected to provide insight into when the central bank may end the series of massive interest rate hikes. Check back at FT.com for details and backlash.
Need to know: business
Manufacturer of agricultural machinery John Deerethe economic leader for capital spending in the United States, beat earnings forecasts and reported an optimistic outlook for the coming year as strong consumer demand and rising prices boosted revenue.
American Glazer family of owners Manchester United The football club said it was looking for outside investment and considering a sale, making it likely the latest prestigious team in the lucrative English Premier League to come to the market in recent months.
It’s barely noticeable, but the items promoted on digital sales platforms are at the forefront of an industry worth tens of billions of dollars. The Big Read discusses how retailers They reshape ads.
general mood Commercial real estate The market has darkened in recent months as borrowing costs have risen, raising the specter of a credit crunch as lenders backtrack and sign only the safest loans.
Clothes It is piling up in warehouses in Bangladesh as consumers in the West tighten their belts. Apparel and textile production is by far the country’s largest industry, accounting for 85 percent of total exports.
world of work
Retirees are among the targets of UK bike and car parts retailers Hafords Amidst a chronic shortage of manpower. About a million people have given up work since the start of the pandemic, with retirement the most common reason for those between the ages of 50 and 70.
Employee assistance programs are facing a complex bulge Mental illness Brought to them by people who have nowhere else to turn. What is behind the increase? Sarah O’Connor explores.
Do HR Departments that exist to protect employees or the company? Listen to the new Working It podcast.
Covid cases and vaccinations
Total global cases: 630.0 million
Total doses administered: 13.0 billion
Get the latest worldwide image through our website Vaccine tracker
Some good news
The elusive British artist Banksy is among those who responded to the war in Ukraine with an explosion of artwork that celebrated the resilience and defiance of her people amid the tragedy of the conflict.
work on it Discover the big ideas shaping today’s workplaces with a weekly newsletter from Work & Careers Editor Isabel Berwick. Register here
Climate chart: an explanation – Learn about the most important weather data for the week. Register here
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