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No end in sight for record eurozone rates, says Bank of France governor

Thank you for joining us. Bosses are facing a slowdown in demand equivalent to levels seen during the pandemic and in the wake of the global financial crisis, according to a Lloyds survey.

The crisis comes as businesses prepare for the Bank of England to potentially announce a 15th consecutive interest rate rise on Thursday, to 5.5%.

5 things to start your day

1) ‘Sandwich generation’ paying for Britain’s inactivity crisis, says former Bank of England chief | Andy Haldane warns of long-term illness pressures on middle-aged workers

2) Cut taxes or electric car industry will suffer, ministers warn | Automakers blame lack of incentives for falling demand for battery-powered vehicles

3) Elon Musk calls Tesla’s Saudi factory claims ‘completely false’ | Reports come as billionaire ‘plays the field’ for new manufacturing site

4) Sainsbury’s slaughtered beef cattle months early as part of its net zero emissions ambitions | Supermarket says improved efficiency on farms has highlighted ‘optimal point of consumption’

5) British farmers ‘struggling to survive’, celebrity chefs warn | British farmers ‘struggling to survive’, warn Rick Stein and Hugh Fearnley-Whittingstall

What happened overnight

Asian stocks fell as concerns over China’s property sector weighed on markets from Hong Kong to Australia, while Japanese investors sold chip stocks returning from a long holiday weekend.

Benchmark U.S. Treasury yields hovered near 16-year highs and the dollar held near six-month highs as traders prepared for a Federal Reserve rate decision on Wednesday. during a week which also sees policy decisions from the Bank of Japan and the Bank of England.

Crude oil continued to rise amid tighter supply, fueling concerns about stagflation.

MSCI’s broadest index of Asia-Pacific shares slipped 0.3%.

Japan’s Nikkei fell 1.1% under the weight of steep losses in chip-related stocks including Tokyo Electron and Advantest.

Japanese markets were closed Monday as Asian technology stocks sold off following a Reuters report that TSMC had asked its major suppliers to delay deliveries.

US markets closed slightly higher on Monday, with the S&P 500 gaining 0.1% to 4,453.53, after its second consecutive week of decline.

The Dow Jones Industrial Average rose less than 0.1% to 34,624.30, while the Nasdaq Composite rose less than 0.1% to 13,710.24.


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