Nothing starkly different today than the news headlines that have been dominating the pages of the national and global press over the past few weeks and months, we’re afraid.
The UK is “definitely” heading into a recession, the US is “possibly” following suit and the crypto crisis rages on. Happy Thursday one and all. In an attempt to brighten everyone’s morning just a smidge, let’s start with some good news. Although we must warn you, there is a sting in the tail.
Demand for homes in London is back to pre-pandemic levels, according to Rob Perrins, chief executive of Berkeley Group. The “flight from the capital has not materialised” he said as he unveiled a 6.4% rise in pretax profit to £551.5m for the year to the end of April.
Demand dropped by 25% during the pandemic, he added, but this was now fully recovered.
Now here comes the sting: “Supply has halved from 2015 and my worry is that it will halve again,” he said. “The environment has got a lot more challenging going forward.”
As for the rest of the news this morning, downbeat would be something of an understatement. The Telegraph has reported that Britain is “definitely” heading into recession, as inflation surges to a new 40-year high on the back of the worst industrial strife for decades. This warning, from the outgoing president of the CBI, Lord Bilimoria, pulls no punches as he warned that the UK’s recovery has been “wiped out by soaring prices” and called for urgent tax cuts to redress the balance.
And while the word “possibility” softens similar news coming out of the US, the chair of the Federal Reserve is not ruling out a recession across the pond. The FT reports that Jay Powell said a US recession is “certainly a possibility” and warned that avoiding a downturn largely depends on factors outside the Federal Reserve’s control.
Finally, the world of crypto continues to battle a deepening crisis as crypto networks pledge to put users in control as they try to survive the challenges gripping the digital asset market, and a dispute over new regulations could see some manufacturers pull their home electric car charger products from sale.
Have a nice day.
