“Golden era” of cheap food is over, ex-Sainsbury's CEO says
The “golden era” of cheap food in the UK is coming to an end, the Guardian reported, citing former Sainsbury’s boss Justin King.
Mr. King says UK households should prepare for higher grocery bills in the long term. The ex-Sainsbury's CEO who is now a non-executive director at Marks & Spencer believes supermarkets would not be able to cope with surging food prices nor will they be capable of protecting consumers from it.
Mr. King warns British consumers would face difficult choices as to what they want to buy. The situation is made worse by galloping inflation and the side effects of the Russia-Ukraine conflict. “I suspect what we will see is a higher proportion, across the piece, spent on food for the longer term. It won’t actually be that high in historical terms but it will require adjustments in terms of how we all prioritize our family budget spending,” he summarized.
According to Mr. King, many UK families would hardly be able to cover higher grocery bills. So, the government would have to step in and provide financial support for struggling households. This, in turn, would raise the burning issue of rising inflation. Earlier, the Bank of England said inflation could soar above 10% in 2022 to its highest level in 40 years.
JPMorgan sees oil at $380 on Russia's retaliatory crude output cuts
Major investment bank JPMorgan Chase & Co predicts that oil prices could soon reach $380 per barrel if US and European sanctions prompt Russia to take retaliatory measures.The Group of Seven nations are currently creating a mechanism to cap the price of Russian oil.
14:48 2022-07-07 UTC+00
Elon Musk warns of recession ahead
Elon Musk, the CEO of Tesla and SpaceX, warned that the US is heading for a recession. Earlier, similar warnings were given by former US President Donald Trump, analysts at Goldman Sachs, and Nouriel Roubini, an economist and professor at New York University.“A recession is inevitable at some point. As to whether there is a recession in the near term, that is more likely than not,” Musk said.
14:31 2022-07-07 UTC+00
BTC to start bearish cycle
After having reached an all-time high, bitcoin is now facing strong bearish pressure. Analysts are trying to figure out how deep it may decline. Bitcoin and the entire crypto market are currently experiencing another major sell-off. Therefore, BTC is projected to plunge to $13,000.Ian Harnett, the co-founder, and chief investment officer of Absolute Strategy Research, outlined such a scenario.
14:04 2022-07-07 UTC+00
US urges its allies to ban Russian gold imports
The US authorities are making determined efforts to disable the Russian economy. In retaliation for Russia’s invasion of Ukraine, the White House first insisted on boycotting Russian oil imports. Recently, the US administration came up with the embargo on Russian gold. From now on, Moscow will find it more complicated to sell out national resources.
12:35 2022-07-07 UTC+00
Turkey’s inflation nears 80%
While some indicators of the Turkish economy are dropping, others continue rising. Thus, the unemployment rate as well as national debt and inflation are still increasing. Under the management of Receipt Erdogan, a permanent president and ,apparently, economic expert, the country’s inflation skyrocketed to an unthinkable level of 70%. Most economists suppose that it is not the ceiling.
12:08 2022-07-07 UTC+00
Fed downgrades its outlook for US economy
The US Federal Reserve knows how to be realistic. The regulator of the world's leading economy is always open about possible difficulties.Although the Fed is the US financial regulator, it also has a large influence on most economies. That is why their statements should be taken seriously. The Fed has sharply worsened its outlook for US GDP growth in 2022.
11:09 2022-07-07 UTC+00