{"id":7407,"date":"2022-08-03T11:58:47","date_gmt":"2022-08-03T10:58:47","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/03\/news-in-review-66\/"},"modified":"2022-08-04T10:39:33","modified_gmt":"2022-08-04T09:39:33","slug":"news-in-review-66","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/03\/news-in-review-66\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cThe world\u2019s three largest economies\nare stalling, with important consequences for the global outlook.\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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Last week saw the International Monetary Fund (IMF) release\nits latest economic assessment andforecast for the global economy. <\/em>Following\nthe effects of the pandemic and Russia\u2019s invasion of Ukraine, the IMF now expects\ngrowth to slow to 3.2% in 2022, a downgrade of 0.4 percentage points from its previous\npublication in April.<\/strong><\/p>\n<\/div>\n\n

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The uncertainty is expected to continue into 2023, with next\nyear\u2019s forecast also downgraded to 2.9% (from 3.6% in April). According to the\nIMF, \u2018this reflects stalling growth in the world\u2019s three largest economies \u2013\nthe United States, China and the euro area\u2019.<\/em><\/p>\n<\/div>\n\n

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Amidst the uncertain global\noutlook, the IMF is predicting that the UK will have the slowest growth of the\nG7 economies in 2023, at 0.5%, significantly below April\u2019s figure of 1.2%.<\/p>\n<\/div>\n\n

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Primary among the faltering\neconomies is the US, which entered a technical recession on Friday after\nshrinking for a second consecutive quarter. <\/p>\n<\/div>\n\n

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As for China, the IMF\nrevised its growth forecast down to 3.3% in 2022, the slowest rate in more than\nfour decades, excluding the pandemic. On Tuesday, it was reported that party\nleaders in China were re-framing this year\u2019s growth target of around 5.5% as guidance\nrather than a hard target.<\/p>\n<\/div>\n\n

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Eurozone forecast <\/strong><\/p>\n<\/div>\n\n

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The outlook for the eurozone was also downgraded, with growth now forecast at 2.6% this year\nand 1.2% next year. The day after the Women\u2019s\nEuro Championships Football Final, the release of Germany\u2019s monthly retail\nsales statistics will have done little to lift the nation; in June, German retail\nsales volumes fell by 8.8%, the largest annual drop since records began. Official\nfigures released on Friday had already revealed stagnant growth between the\nfirst and second quarters in the eurozone\u2019s biggest economy.<\/p>\n<\/div>\n\n

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Inflation data released on Friday revealed a eurozone-wide 8.9% spike in\nJuly, the highest rate since the creation of the euro in 1999. Globally too, the\nIMF revised its inflation estimates upwards, forecasting 6.6% in advanced\neconomies (up 0.9%) and 9.5% in emerging economies (up 0.8%) this year. <\/p>\n<\/div>\n\n

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\u2018Inflation at current levels represents a clear risk for\ncurrent and future macroeconomic stability\u2019<\/em> according\nto Pierre-Olivier Gourinchas of the IMF, who stated that \u2018bringing it back\nto central bank targets should be the top priority for policymakers.\u2019<\/em><\/p>\n<\/div>\n\n

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UK\u2019s electric vehicle plans<\/strong><\/strong><\/p>\n<\/div>\n\n

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UK car production\nfigures released last week, however, provided a much-needed bright spot, increasing\nby 5.6% year-on-year in June. Optimism in the industry was further bolstered by\nnews that Britishvolt will receive government funding to build a \u2018gigafactory\u2019\nin Cambois, near Blyth, which will allow for the mass production of electric\ncar batteries and create 3,000 jobs.<\/p>\n<\/div>\n\n

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Announcing the\ndevelopment, Business Secretary Kwasi Kwarteng said, \u201cThe Blyth gigafactory\nwill turbocharge our plans to embed a globally competitive electric vehicle\nsupply chain in the UK and it is fantastic to see how the project is\nprogressing.\u201d<\/em><\/p>\n<\/div>\n\n

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Energy help<\/strong><\/strong><\/p>\n<\/div>\n\n

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Last Friday welcome news\ncame for many as the government announced that households in England, Scotland\nand Wales will receive \u00a3400 fuel bill support payments in six monthly\ninstalments starting in October. Households will see a discount of \u00a366 applied\nto their energy bills in October and November, and \u00a367 a month from December to\nMarch 2023.<\/p>\n<\/div>\n\n

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Apple and Amazon sales up <\/strong><\/p>\n<\/div>\n\n

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Better than expected sales have\nbeen posted by both Apple and Amazon, reassuring investors that the tech giants\nwill be able to weather slowdowns in global economies. The quarterly updates\nfrom Apple and Amazon are closely watched as indicators of how customers are\nreacting to the economic climate. The updates sent the companies\u2019 shares soaring.<\/p>\n<\/div>\n\n

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House prices still climbing<\/strong><\/p>\n<\/div>\n\n

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According\nto Nationwide, house prices climbed 11% in the last 12 months, although the\nrise over the last month was just 0.1%. “The housing market has\nretained a surprising degree of momentum<\/em>” said Robert Gardner,\nNationwide’s Chief Economist, adding that there were “tentative signs\nof a slowdown in activity”.<\/em><\/p>\n<\/div>\n\n

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The\nJuly figure was marginally ahead of June’s annual rise of 10.7% and left the\naverage house price at \u00a3271,209. The Bank of England is expected to increase\ninterest rates on Thursday.<\/p>\n<\/div>\n\n

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Here to help<\/strong><\/p>\n<\/div>\n\n

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Financial advice is\nkey, so please do not hesitate to get in contact with any questions or concerns\nyou may have.<\/p>\n<\/div>\n\n

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The value of investments can go down as well as up and you may not get\nback the full amount you invested. The past is not a guide to future\nperformance and past performance may not necessarily be repeated.<\/strong><\/strong><\/p>\n<\/div>\n\n

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All details are correct at time of\nwriting (3 August 2022)<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cThe world\u2019s three largest economies are stalling, with important consequences for the global outlook.\u201d Last week saw the International Monetary Fund (IMF) release its latest economic assessment andforecast for the global economy. Following the effects of the pandemic and Russia\u2019s invasion of Ukraine, the IMF now expects growth to slow to 3.2% in 2022, a […]<\/p>\n","protected":false},"author":12,"featured_media":7501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,112],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7407"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=7407"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7407\/revisions"}],"predecessor-version":[{"id":7408,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7407\/revisions\/7408"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/7501"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=7407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=7407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=7407"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=7407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}