Concerns about the European economy: a survey reveals that almost 23% of Spaniards are worried about the cost of living – L’Europe en direct | Spain

Middle East war could trigger global recession, Wall Street experts say

A global recession could be triggered by conflict in the Middle East, as the humanitarian crisis compounds challenges facing an already precarious global economy, two of the biggest names on Wall Street have warned.

The downbeat comments come as the City braces for another grim update on the UK economy, with the Office for National Statistics due to provide an update on how it fared during the third quarter on Friday .

After weak growth in 2023, the British economy should again be almost at a standstill, according to estimates by City economists. There are also downbeat new figures for the property market, with UK mortgages expected to post the lowest growth in a decade in 2023 and 2024.

Regarding the global economy, Larry Fink, chief executive of the world’s largest asset manager, BlackRock, said the combination of the Hamas atrocities of October 7, the Israeli attack on Gaza and the Russia’s invasion of Ukraine last year had pushed the world “almost into a whole new future.”

In an interview with the Sunday Times, Fink said: “Geopolitical risk is a major element shaping our lives. Around the world, fear is increasing and hope is diminishing. Growing fear leads to a withdrawal of consumption or additional spending. Fear therefore creates long-term recessions, and if fear continues to grow, the likelihood of a recession in Europe and the United States increases.”

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Alex Lawson

Ryanair to reward shareholders as it heads for record profits after fare hike

Ryanair will make regular payments to its shareholders for the first time after soaring airfares helped the airline post record profits.

The low-cost carrier said it expected to make profits of between €1.85 billion (£1.6 billion) and €2.05 billion in the financial year to the end of March , far surpassing its previous highest profit of €1.45 billion in 2018.

Ryanair was helped by a 24% rise in average airfares to around €58 in the six months to the end of September, as a post-pandemic boom in international travel demand helped the biggest airline of Europe. A strong Easter, record summer traffic and growth in air fares offset rising fuel costs.

UK construction output falls again as housebuilding declines – business is live

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The Irish airline’s profits reached €2.18 billion for the half-year, 59% better than its previous record for the period, set last year. She expects “modest losses” during the winter season, when airlines typically struggle to turn a profit.

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Activity in Spain’s services sector grew at a slightly faster pace in October, Reuters reported today, citing the HCOB Spanish Services Purchasing Managers’ Index (PMI) compiled by S&P Global.

Businesspeople surveyed by S&P Global said their operating expenses continued to rise, but most were protecting their margins by raising their own prices.

“As the entire European services sector faces continued downward pressure on business activity, Spanish businesses are stepping up and reigniting growth,” said Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank.

The British Ministry of Defense today publicly stated updating information that inflation reached 6% in Russia in September, up from 5.3% the previous month, adding that “higher inflation will almost certainly increase the costs of financing Russia’s war in Ukraine.”

The British ministry said that “it is very likely” that the Russian central bank will “maintain high interest rates until 2024” and “this will most likely increase borrowing costs for Russian consumers” while affecting probably the costs of servicing the Russian government’s debt.

“The Russian economy is likely to overheat,” the ministry said, adding that “persistent high inflation is likely to erode public spending in real terms, particularly in areas such as social care, where spending increases below inflation.”

“This once again illustrates the reorientation of the Russian economy to fuel war above all else,” the ministry said.

Nearly 23% of Spaniards have experienced “anxiety or depression” due to the rising cost of living, a study has found. survey produced for the newspaper El País and radio SER.

Another 57.7% reported feeling discouraged or pessimistic due to inflation.

Nearly all respondents – 90% – said they view inflation as the biggest global threat today, even more so than war, energy instability, terrorism and the climate crisis.

Hello and welcome to the Europe blog.

Today we will examine the state of the European economy.

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