Headlines

Britain's economy grew by less than expected in July, raising the risk that it is already in a recession, with the sharp climb in energy tariffs hurting demand for electricity and a leap in the cost of materials hitting the construction sector, Reuters reported. With inflation at a 40-year high of more 10%, gross domestic product expanded by 0.2% from June, official data showed on Monday, weaker than a median forecast of 0.4%. In the three months to July, GDP was flat compared with the previous three-month period.

The European Union's securities watchdog said on Monday it was "actively considering" potential measures to ease strains in energy markets where some participants face difficulties in finding enough cash to cover positions, Reuters reported.

Germany imported goods from Russia valued at 2.9 billion euros ($2.95 billion) in July, according to data released on Monday, as elevated energy costs frustrated German efforts to wind down trade with Russia, Reuters reported. The value of German imports from Russia rose by 10.2% compared to July 2021, the Federal Statistical Office said. The office attributed the surge mainly to higher prices, particularly in the energy sector, as cuts to Russian gas deliveries drive up energy bills for households and businesses in Europe's largest economy.

German pilots at flagship carrier Lufthansa have agreed not to strike until mid-2023 under an initial wage dispute agreement that includes a 980-euro ($998.23) pay rise, both sides said on Monday, Reuters reported. During the truce period, which runs until June 30 next year, the union and the company aim to expand the deal into a broader agreement, Lufthansa said. Under the initial agreement, cockpit crews are to receive an increase in their basic monthly pay of 490 euros each in two stages, with retroactive effect from 1 August 2022, and as of 1 April 2023, VC said.

Long Covid is costing the Australian economy the equivalent of $3.6 billion a year in lost output, the Australian Financial Review reported, citing an exclusive data analysis, Bloomberg News reported. Based on data from the country’s Treasury estimating some 31,000 workers called in sick because of the condition in June, the analysis by think tank Impact Economics and Policy found the economic cost came in at A$100 million ($68 million) a week, according to the AFR. That amounts to some A$5.2 billion on an annual basis.

The governor of the Irish Central Bank has warned the Government that budgetary measures to cushion the impact of inflation need to be temporary and targeted to limit the risk of fueling further price growth, the Irish Times reported. In a pre-budget letter to the Minister for Finance, Gabriel Makhlouf also highlighted the significant budgetary risk posed by corporation tax receipts, suggesting the public finances were now “highly exposed to business decisions of a small number of firms”.

Lenders of struggling Chinese developer Evergrande Group have appointed a receiver this week to seize its Hong Kong headquarters, two sources said, as the world's most indebted developer struggles to emerge from its debt crisis, Reuters reported. Saddled with more than $300 billion in liabilities, Evergrande has been trying to sell its 26-storey China Evergrande Centre in Hong Kong's Wan Chai district after a potential $1.7 billion deal collapsed late last year, as part of the asset disposal effort to raise funds.

China is increasingly counting on its banks to step up mortgage lending and help boost a sinking housing market. But there is a problem: Lenders are stuck with many mortgages from boom times that are at higher risk of not being repaid, the Wall Street Journal reported. Chinese property developers wrote at least $300 billion of mortgage guarantees over the past few years for partially built apartments that they presold, according to regulatory filings.

Euro zone finance ministers agreed on Friday to act together to protect households and companies from soaring energy prices, coordinating their support policies with the European Central Bank to avoid adding to inflationary pressures, Reuters reported. The ministers from the 19 euro zone countries agreed support should focus on providing money to help people and industry cope but that this should be regarded as an emergency measure and be carefully targeted where possible. Support for companies should be coordinated across borders to preserve fair competition.

Ukraine’s top Cabinet official panned slow progress from the International Monetary Fund in moving ahead with a new assistance package for the war-torn nation, Bloomberg News reported. Prime Minister Denys Shmyhal gave credit to the IMF for its abundant past support of Ukraine, including in 2014-2015 after Russia annexed the Crimean peninsula and fomented military conflict in the country’s east.