Businesses across Europe are starting to lose ground

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Good evening

A new series of reviews and forecasts has highlighted the challenges facing the global economy and business in the face of rising inflation and a full-blown energy crisis.

Business activity in the eurozone declined fifth consecutive month in November, according to S&P Global’s closely watched Purchasing Managers’ Index, it scored 47.8, with 50 marking the gap between contraction and expansion. Although the overall result was another indication that the block’s output there will be a contract this winterthere was encouraging news about supply chain problems and easing price pressures.

However, in a separate survey conducted by the European Roundtable on Industry, there were few signs of optimism. It showed that a third of the largest industrial companies expected stop or reduce operations due to record energy prices and slowing demand.

Businesses have also raised concerns that stimulus under the $369 billion green technology initiative (also known as the Inflation Reduction Act) could divert investment from Europe.

A line chart of the Eurozone Purchasing Managers' Index showing that a slowdown in business activity indicates a new recession

The UK PMI of 48.3, although broadly unchanged from October, was fourth consecutive reading below 50, with new orders falling at the fastest pace in almost two years, indicating a deepening recession. Survey participants cited a cost-of-living crisis, the war in Ukraine, growing export problems, higher borrowing costs, and fiscal tightening.

Many respondents cited problems related to Brexit. Cips Chief Economist John Glen said: “The Covid veil, which has now been almost completely lifted, has exposed the challenges exporters still face, struggling with customs and paperwork issues, and other Brexit restrictions that are turning away overseas customers.”

Production company Johnson Matthew is the latest casualty of the country’s soaring inflation and energy prices, announcing today a cut of up to 15 percent of its top management positions.

The result of the index of business activity in the UK follows yesterday’s OECD forecast, which says that the country will worst bar G20 Russia over the next two years, with GDP falling by 0.4 percent in 2023.

header US PMI reading fell from 48.2 to a three-month low of 46.3 in November, with both manufacturing and service output lower as demand was hit by inflation, rising borrowing costs and economic uncertainty, suggesting the economy was shrinking on the annual rate 1 percent.

The OECD expects U.S. growth to be just 0.5 percent next year and global growth to be 2.2 percent, driven by more resilient emerging economies.

What you need to know: the British and European economy

UK government loans rose in October as government measures to help households and businesses with energy prices It entered into force. The Ministry of Finance had bail out the Bank of England for the first losses it suffered under its quantitative easing program since 2009 as a result of higher official interest rates.

Brussels urged EU member states to cut their spending during energy crisisclaiming that less than 30 percent of the bloc’s support measures were “well aimed”, reports our newsletter Europe Express (for Premium subscribers).

What you need to know: World Economy

New Zealandwhich has become a “canary in the coal mine” due to inflationary pressures, raised its benchmark interest rate by record 0.75 percentage points. The Reserve Bank of New Zealand said further monetary tightening is needed to bring inflation back into its target range, even as other economies begin to contract.

Saudi Arabia investing in solar and wind power can help the kingdom meet emissions targets, and pump more oil sell to others. Martin Wolf says global policy makers must decide how to speed up transition to green energy.

Argentina, a major player in the global food market, accounting for 8 percent of wheat exports, 18.5 percent of corn and 40 percent of soybean oil and meal. severely affected by drought. Farmers are desperate because of the lack of help from the government.

Outgoing Party President of Brazil Jair Bolsonaro Start contested the result he narrowly lost the runoff election last month by calling for the cancellation of ballots from electronic voting machines with alleged malfunctions.

Covid-stricken Hong Kong lost its luxury shopping crown to New York. Upper Fifth Avenue in Manhattan is currently the world’s most expensive street for luxury shopping. new pollwith Hong Kong’s Tsim Sha Tsui in Kowloon in second place and Milan’s Via Monte Napoleone in third.

US Federal Reserve will release the minutes of its November policy meeting at 2:00 pm ET/7:00 pm in London. They are expected to provide an indication of when the central bank may end its series of interest rate hikes. Check in details and reactions.

What you need to know: business

Agricultural machinery manufacturer John DeereU.S. economic flagship capital spending beat earnings expectations and reported optimistic outlook for next year as strong consumer demand and higher prices boosted revenues.

Glazer family, American owners Manchester United football club, said they seeking outside investment and considering salewhich could make it the latest prestigious team in the lucrative English Premier League to enter the market in recent months.

They are barely visible, but promoted products on digital sales platforms are at the forefront of the industry. tens of billions of dollars. Our big read tells how retailers even reshape ads.

Mood in the world commercial property The market has darkened in recent months as borrowing costs have shot up, boosting the specter of the credit crunch as lenders step back and sign only the safest loans.

clothing accumulates in warehouses in Bangladesh as consumers in the west are tightening their belts. Clothing and textile production is by far the country’s largest industry, accounting for 85 percent of total exports.

World of work

Retirees are among those targeted by UK bicycle and auto parts dealers. Halfords among chronic labor shortage. Nearly 1 million people have quit their jobs since the start of the pandemic, with retirement being the most common reason given by people aged 50 to 70.

Employee assistance programs face rising tide of complexity mental health problems brought to them by people who have nowhere else to turn. What’s behind the raise? Sarah O’Connor explores.

Do human resources Do departments exist to protect employees or the company? Hear what’s new Podcast “We work”.

Covid cases and vaccinations

Total global cases: 630.0million

General doses: 13.0 billion

Get the latest world picture with our vaccine tracker

good news

The elusive British artist Banksy is one of those who have responded to the war in Ukraine with a mass of art celebrating the resilience and defiance of its people in the face of the tragedy of the conflict. Talk reports.

Stencil image on a damaged wall in Ukraine

Last week, Banksy posted a video to Instagram suggesting he was behind the spray-painted artwork that appeared in the Ukrainian capital this month © Getty Images

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