Overseas Headlines – June 20, 2022

United States:

US Recession This Year Is Now More Likely Than Not: Nomura

“The US economy will likely fall into a mild recession by the end of 2022 as the Federal Reserve raises rates to tame prices, according to economists at Nomura Holdings Inc. Nomura warns that financial conditions will tighten further, consumers sentiment is souring, energy and food supply distortions have worsened and the global growth outlook has deteriorated.”



UK Set for Recession and Pound Test of Historic Lows, Survey Finds

“Six years after Britain decided to leave the European Union, market participants see a country in crisis: The UK is stumbling toward recession as inflation spirals while the pound is on course to retest historic lows.”



China’s Consumer Confidence Crisis Will Leave Permanent Scars

“With the spike in inflation, US consumer sentiment has plunged to a record low. So imagine how the Chinese feel as they struggle through months of some of the world’s strictest pandemic controls—including citywide lockdowns in some places. Two years ago, Chinese consumers rebounded quickly from the initial outbreak of Covid-19. There wasn’t much economic trauma then. Only small geographical areas were affected, and within three months life was back to normal. This time, two and a half months after a full lockdown in Shanghai, the government is still struggling to contain the very infectious omicron variant.”



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