Good morning.
Markets need to start the week firmly in the red as fears of rising inflation, slowing economic growth and a blockade in China have shaken sentiment.
Asian markets fell overnight, with Chinese stocks on track to reach their lowest level since May 2020.
The FTSE 100 was to follow suit, while European stocks also fell despite relief from French President Emmanuel Macron’s election victory.
The music of negative sentiment comes as the Federal Reserve prepares to raise interest rates to deal with fierce inflation, while ongoing blockages in China have sparked fears of demand and pushed down oil prices.
5 things to start your day with
1) British Airways to Madrid Cabin Crew Base The UK flag carrier will open a cabin crew base in Madrid as bosses fight to avoid the recent chaos of travel that has been going on all summer.
2) Russian sanctions are expected to cost the UK economy 6 billion pounds in nine years. An official analysis of trade measures released earlier this month found that the restrictions will hit the multibillion-pound economy on the economy over the next nine years.
3) Ukraine calls on Johnson to ensure that “not a drop” of Russian oil reaches the United Kingdom. Whitehall urges UK buyers to adjust to Russian oil ban by year’s end
4) Live royalties are falling again as the industry fails to recover from the pandemic. Live performance revenue reached £ 54 million in 2021, 38% less than the £ 85 million recorded in 2019.
5) Twitter “more receptive” to Elon Musk’s takeover plan Twitter and Mr Musk met on Sunday to discuss the deal, according to the Wall Street Journal.
What happened during the night
Asian markets sank on Monday amid growing fears of a sharp rise in US interest rates as officials struggled to contain rampant inflation, while oil was hit by expectations that China’s demand would dry up due to the blockade of Covid. Hong Kong, Shanghai and Taipei fell by more than two percent, while Tokyo, Seoul, Singapore, Manila and Jakarta were also deep in the red.
Expect today
Corporate: Polymetal International (interim results)
Economy: Rightmove Housing Price Index (UK), Construction Production (EU), Chicago Federal Reserve National Activity Index (US)
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