FirstFT: Outlooks for EU growth and inflation worsen as energy crisis hits 

 May 8, 2022

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Brussels is defined Cut his growth forecasts Even further and raise its inflation forecast when the energy crisis triggered by Russia’s invasion of Ukraine takes its toll on the EU economy.

Both the EU and the eurozone are expected to expand by 2.7 per cent this year, well ahead of the previous 4 per cent expectation, according to draft European Commission forecasts to be released today. Growth is expected to be 2.3% in 2023.

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Inflation is expected to rise above 6% in the EU and the euro area this year, with some Central and Eastern European countries expected to see double-digit price increases in 2022.

Inflation in the eurozone is expected to fall to 2.7 percent in 2023. But the figure remains above the European Central Bank’s target of 2 percent, which underscores the delicate balancing act facing policymakers amid lukewarm growth and rising prices.

Last week, ECB President Christine Legard signaled that she would support a major interest rate hike in July, paving the way for a first hike in more than a decade. The commission previously predicted that inflation would fall back below the bank’s target next year.

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Thank you for reading FirstFT Europe / Africa. Here’s the rest of today’s news – George

The latest on the war in Ukraine

  • NATO expansion: On a significant day for the Nordic countries, Finland announced yesterday that it would be formal Apply for NATO membership In the coming days, while the ruling Social Democrats in Sweden have said they will follow suit.

  • energy: Sanctions against Russia and Cubid-19 locks in China have reduced shipping volumes in Rotterdam, Europe’s busiest seaport. but One charge is blooming While the EU is trying to reduce its dependence on Russia: liquefied natural gas.

  • opinion: The US thinks that Vladimir Putin will approve the use of nuclear weapons only if he sees an existential threat to Russia. But what would be appropriate as such a threat, Asks Malcolm Chalmers Of the Royal United Services Institute.

  • Wheat: The G7 is urgently looking for alternative ways Export Ukrainian grain Blocked by Russian forces as concerns about risk of global post-India “hunger crisis” Wheat exports are banned.

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1. UK bosses focus on retraining to fill labor gaps Employers in the UK are planning more and more Train the existing staff instead of raising salaries To entice new recruits, according to a quarterly survey that suggested wage pressures may ease. About two-thirds of employers expect to have difficulty filling vacancies over the next six months.

Manufacturers in the UK ‘renew’ supply chains British manufacturers are Return production To Britain in a “renewed” push in response to the supply chain chaos caused by the corona and Brexit epidemic. Three-quarters of companies have increased the number of their UK suppliers in the past two years, according to a Make UK survey.

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3.Harrow Beijing is losing British branding A 450-year-old school in Beijing affiliated with the English Harrow School was Had to give up its famous brand name When China tightens controls on education providers. A Harrow representative said the change stems from national laws on naming private schools that teach Chinese citizens.

4. Credit Suisse is approaching a deal with the West Virginia Governor’s group Credit Suisse and West Virginia Gov. Jim Justice Close to town More than $ 690 million his mining company owes to a Swiss bank customer. Bluestone Resources borrowed heavily from Greensil Capital, the failed financial supply chain of the British supply chain that relied on some of Credit Suisse’s richest clients.

READ MORE:  FirstFT: US Senate approves $40bn Ukraine aid package

5.Bitcoin has no future as a payment network, says the head of FTX Of Bitcoin Inefficiency and environmental toll Prevent the cryptocurrency from being an effective means of payment, according to Sam Benman-Fried, the billionaire founder of the FTX digital assets exchange, who said the blockchain transaction verification system could not be increased.

  • More about crypto: On Lunch with the FT, Bankman-Fried discusses whether crypto is a Ponzi scheme. Collapse a Steeplequin is sloping Raised serious questions about the entire market.

Sam Bankman-Fried, Founder and CEO of FTX, Believes Bitcoin Has No Future as a Payment Network © Lam Yik / Bloomberg

The day ahead

Economic Data The European Union release March trade data, while Rightmove issues monthly data on UK apartment prices. Canada has wholesale manufacturing and trade data.

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Company profits The British bakery chain Gregs publishes a trading update in the first quarter and Ryanair publishes its full year data. BuzzFeed and Tencent are also reported.

Northern Ireland Boris Johnson will visit Belfast to try to persuade the Democratic Union to rejoin the division of power in Stormont, but the British prime minister will face opposition over plans One-sided scrap Parts of the post-Brexit convention.

Biden meets the Greek prime minister US President Joe Biden welcomes Greek Prime Minister Kyriakos Mitsotkis to the White House.

Sign up for This week’s newsletter Kadima For a guide to what is about to happen. Sent every Sunday, it presents a preview of the economic, political and corporate agenda around the world.

What else are we reading

North Sea maker seeks “fiscal stability” The head of an North Sea energy company is betting on another 30 years of oil and gas production in the UK Turn to “fiscal stability” As it appears to be spending $ 3 billion on project resuscitation. Profits can be “very high” but the losses are “very significant”, said Gilad Myerson, on behalf of Ithaca Energy.

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How a professor moved his research – and the lab – to a new land Boxes of equipment and instruments are placed around Roal Dalance’s Laboratory for Physical Chemistry At Radboud University Nijmegen. Six months after his research group began dismantling its work environment at Oxford, the lab is undergoing a slow renaissance 500 km away in the Netherlands.

Male executives in the UK are blocking gender balance efforts Male managers are Blocking efforts Improve gender balance in UK companies, according to a study by the Chartered Management Institute which found passive, and even active, opposition to gender equality on the part of male bosses.

READ MORE:  US stocks fall on fears of slowing growth

The bonuses are obsolete in the age of knowledge work The idea of ​​paying for performance is deeply rooted. But what if the idea is flawed? Two studies suggest this, writes Filita Clark, given that the work is more complex and participatory than ever. Proposal Bonuses can even be harmful.

The collapse of technology stocks may be far from over Richard Waters writes that there are reasons to expect more pain to reach investors in technology companies. He says that if you rate the sector by income multipliers, a preferred index of growth investors, there is Enough space for further descents.

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Read FT’s latest column: A behind – the – scenes look at Rutherford HallCommunication strategist

Paris New York 2022

While the art fair prepares to return to The Shed in Manhattan, the FT talks to festival director Christine Messino, who designed A more intimate experience For the participants.

Paris New York at The Shed in 2021 © Casey Kelbaugh / Frieze

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