
<p>KEY POINTS</p>



<ul><li>The euro zone faces concurrent economic shocks from the war in Ukraine and a surge in food and energy prices exacerbated by the conflict, along with a supply shock from China’s zero-Covid policy.</li><li>Stefan Hartung, CEO of German engineering and technology giant Bosch, told CNBC that the company sees “a big recession in the making.”</li></ul>



<p>LONDON — The CEOs of several European blue chip companies have told CNBC that they see a significant recession coming down the pike in Europe.</p>



<p>The continent is particularly vulnerable to the fallout from the Russia-Ukraine war,&nbsp;<a href="https://www.cnbc.com/2022/04/28/europe-faces-recession-if-putin-fully-shuts-off-the-gas-taps.html">associated economic sanctions and energy supply concerns</a>, and economists have been downgrading growth forecasts for the euro zone in recent weeks.</p>



<p>The euro zone faces concurrent economic shocks from the war in Ukraine and a surge in food and energy prices exacerbated by the conflict, along with a supply shock arising from China’s zero-Covid policy. That has prompted concerns about “stagflation” — an environment of low economic growth and high inflation — and eventual recession.</p>



<p>“For sure, we see a big recession in the making, but that’s exactly what we see — it’s in the making. There is still an overhanging demand because of the Covid crisis we just are about to leave,” said Stefan Hartung, CEO of German engineering and technology giant&nbsp;<a href="https://www.cnbc.com/quotes/BOSCHLTD-IN" target="_blank" rel="noreferrer noopener">Bosch</a>.</p>



<p>“It’s still there and you see it heavily hitting us in China, but you see that in a lot of areas in the world, the demand of consumers has already even been increased in some areas.”</p>



<p>In particular, Hartung noted lingering consumer demand for household appliances, power tools and vehicles, but suggested this would dissipate.</p>



<p>“That means for a certain amount of time, this demand will still be there, even while we see the interest increase and we see the pricing increase, but at some point in time, it won’t be just a supply crisis, it will also be a demand crisis, and then for sure, we are in a deep recession,” he added.</p>



<p>Inflation in the euro zone hit a record high of 7.5% in March. So far, the&nbsp;<a href="https://www.cnbc.com/european-central-bank/">European Central Bank</a>&nbsp;has remained more dovish than its peers, such as the Bank of England and the U.S. Federal Reserve, both of which have begun hiking interest rates in a bid to rein in inflation.</p>



<p>However, the ECB now expects to conclude net asset purchases under its APP (asset purchase program) in the third quarter, after which it will have room to begin monetary tightening, depending on the economic outlook.</p>



<p>Berenberg Chief Economist Holger Schmieding said in a note Friday that near-term risks to economic growth are tilted to the downside in Europe.</p>



<p>“Worsening Chinese lockdowns and cautious consumer spending in reaction to high energy and food prices could easily cause a temporary contraction in Eurozone GDP in Q2,” Schmieding said.</p>



<p>“An immediate embargo on gas imports from Russia (highly unlikely) could turn that into a more serious recession. If the Fed gets it badly wrong and catapults the U.S. straight from boom to bust (unlikely but not fully impossible), such a recession could last well into next year.”</p>



<p>Yet Schmieding suggested that the euro zone is likely to enter recession only “if worse came to worst,” and that it isn’t a base expectation.</p>



<p>Mark Branson, president of German financial regulator BaFin, said any military escalation in Ukraine or further energy supply disruption could pose serious risks to growth in Europe’s largest economy, with industrial sectors particularly vulnerable.</p>



<p>“We’re already seeing that growth is down to around zero in many jurisdictions, including here, and it’s vulnerable. It’s also vulnerable from the ongoing Covid-related shocks,” he said.</p>



<p>“We’ve got inflation that’s going to need to be tackled, and it’s going to need to be tackled now, so that’s a cocktail which is difficult for the economy.”</p>



<h3 class="wp-block-heading" id="h-challenging-business-environment">‘Challenging business environment’</h3>



<p>Slawomir Krupa, deputy CEO at&nbsp;<a href="https://www.cnbc.com/quotes/GLE-FR" target="_blank" rel="noreferrer noopener">Societe Generale</a>, told CNBC on Thursday that the French lender is monitoring the macroeconomic picture closely.</p>



<p>“It’s obviously a fundamental piece of news for the macroeconomic context and the triggered inflation feedback loop between the energy shock – which was already going on before the war in Ukraine – you have the inflation expectation rising and the risk of a final, fundamental impact on the macroeconomy into a recession,” he said, adding that this would potentially affect “the entire system, and (SocGen) as well.”</p>



<p>Ola Kallenius, CEO of <a href="https://www.cnbc.com/quotes/MBG-DE" target="_blank" rel="noreferrer noopener">Mercedes-Benz</a>, also told CNBC last week that the situation in China and the Ukraine war are making for a “challenging business environment” for the German luxury automaker in three distinct ways.</p>



<p>“On the one hand, we have the ongoing shortages mainly associated with semiconductors. On top of that, there are now new lockdowns in China, our biggest market, which will affect us in China but also can affect supply chains across the world, and in addition to that, of course, the Ukraine war, so the business environment is challenging,” he explained.</p>



<p>His comments were echoed by&nbsp;<a href="https://www.cnbc.com/quotes/VOW3-DE" target="_blank" rel="noreferrer noopener">Volkswagen</a>&nbsp;CEO Herbert Diess, who told CNBC on Thursday that the company also faced a “challenging environment” from Covid, the chip shortage and the war in Ukraine in the first quarter.</p>



<p><a href="https://www.cnbc.com/quotes/MAERSK.B-DK" target="_blank" rel="noreferrer noopener">Maersk</a>&nbsp;CEO Soren Skou said Thursday that the world’s largest shipping company is also keeping an eye on recession risks, particularly in the United States, but does not expect those to come to the fore until late 2022 or early 2023.</p>


KGJLDHJ75ZNCHLECJOATMMUGCY

‘We see a big recession in the making’: Top CEOs are fearing the worst in Europe

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<p>A joint report on Multilateral Development Banks&#8217; climate finance activity showed that the amount committed to tackle the impact of climate change rose to a total of $66 billion last year from $61.6 billion in 2019. In response to Africa’s climate finance needs, the African Development Bank doubled its climate finance for to $25 billion between 2020 and 2025. Al Hamdou Dorsouma, Acting Director for Climate Change and Green Growth at the AfDB joins CNBC Africa for more.</p>


Ramping up Africa’s climate resilience for inclusive post-Covid-19 recovery

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<p>Nigeria&#8217;s government has inaugurated the advisory board of the African Enterprise Initiative. The initiative has been designed to provide the capacity, the drive, the funding and platform required for Nigerian Enterprises operating at all levels, to penetrate global markets. Founder and Executive Chairman of the Initiative, Nicky Okoye joins CNBC Africa for more.</p>


African Enterprise Initiative: How Nigeria plans to leverage the AfCFTA

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<p>Nigeria is set to receive about 8 million additional COVID-19 vaccines by the end of August. This comes as the country has recorded 1,249 news cases within July, raising fears of a possible third wave of the pandemic. The Head of Risk Communication at the Nigerian Centre for Disease Control, Dr. Yahya Disu joins CNBC Africa for more.</p>


Nigeria to receive nearly 8mn COVID-19 vaccines by August

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<p>The CEO of the Nigerian Exchange says the listing of the Guaranty Trust Holdings sends the right signal that the exchange is open for business and that the exchange in a post-demutualised world will be the right platform for corporates who are keen on transparency. GT Holdings Co now joins FBN holdings, Stanbic IBTC Holdings and FCMB Group in operating a holding company structure, but what are the benefits? Ayodeji Ebo, Head of Retail Investment at Chapel Hill Denham joins CNBC Africa for more.</p>


Nigerian banks: Benefits of Holdco Structure

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<p>Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva says the assent of the Petroleum Industry Bill by President Muhammadu Buhari will see an end to the controversial petrol subsidies. This comes as Nigeria celebrates its 50-year membership of the oil producer club, OPEC. Meanwhile, Nigerians are expecting the June inflation report this week and the second quarter GDP data later this month. Joining  CNBC Africa  for a discussion on how best Nigeria can achieve a sustainable growth trajectory post Covid-19 are; Andrew Nevin, Chief Economist at PwC Nigeria and Tilewa Adebajo,  CEO of CFG Advisory.</p>


How Nigeria’s economy can grow sustainably post-COVID

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<p>A report by BudgIT says that the Nigerian Government spent 3.34 trillion-naira servicing debt in 2020. This represents 97.6 per cent of the 3.42 trillion-naira available revenue. Budgit’s 2020 budget implementation analysis also shows that a total of 10 trillion naira of the budget expenditure was spent as of December 31st, 2020. Emmanuel Odiaka, CEO at ECOB Capital Limited joins  CNBC Africa for more.</p>


Breaking down Nigeria’s budget implementation for 2020

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<p>The Central Bank of Nigeria has issued a Supervisory Framework for Payment Service Bank. According to the Apex Bank the framework provides a set of regulations that are targeted at streamlining the operations of PSBs and , ensuring transparency in their operations. Ade Atobatele,  Technology Entrepreneur joins  CNBC Africa for more.</p>


CBN publishes framework for payment service banks

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<p>The eleventh of July marked the fifth African Anti-Corruption Day, signalling a significant milestone in the fight against Corruption on the continent. This year’s theme was Regional Economic Communities as critical actors in the implementation of the African Union Convention on Prevention and Combating Corruption. Joining CNBC Africa to assess the level of progress made in Africa&#8217;s anti-corruption fight is the Regional Lead for Africa and the Middle East at Open Government Partnership, Theo Chiviru.</p>


African Anti-Corruption Day: Examining progress made so far

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<p>The Abdul Samad Rabiu Africa Initiative and Kwara State Government, have jointly announced the construction of what will be the largest oncology and diagnostic centre in West Africa. Governor Abdulrahman Abdulrazaq of Kwara State says the initiative is aimed at reversing medical tourism in Nigeria.</p>


ASR Africa to construct oncology & diagnostic centre in Kwara State

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<p>Nigeria’s Senate has approved the 2021 supplementary budget, it was raised to 982.7 billion naira. The legislators also approved the Federal government’s 6.18 billion external borrowing contained in the 2021 Appropriation Act. Egie Akpata, Director of UCML Capital joins CNBC Africa for more.</p>


Nigeria’s Senate passes 2021 supplementary budget

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<p>A report by African Private Equity and Venture Capital Association shows that the volume of total reported venture capital deals in Africa rose to 319 in 2020 from the 140 reported in 2019. AVCA disclosed that African entrepreneur start-ups raised a remarkable $1.1 billion in 2020 despite the challenges posed by the COVID-19 pandemic. Let’s make sense of this report, and I am being joined by the Chief Executive Officer of AVCA, Abi Mustapha-Maduakor.</p>


AVCA: African venture capital deal volumes over twice as much in 2020

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<p>The Cyprus Forum aims to be a catalyst to drive outcomes that will improve socially responsible policy. Founder of the Forum Nicolas Kyriakides says for businesses in Africa, lobbying can play a vital role to create a more open and business friendly legal system that is fit for purpose. He is currently in the process of working with Nigeria to set up a steering committee to improve transparency in politics and business. Nicolas Kyriakides, Founder of Zenox Pubic Affairs joins CNBC Africa for more.</p>


Driving reforms in business & politics – Lessons from Cyprus

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<p>The operational phase of the African Continental Free Trade Area was launched on the 7th of July 2019, while trade under the regional pact has been on for over 6 months now. Afex Commodities Exchange says unlocking the gains in regional trade will require African economies to build a digital economy to foster the production of higher quality goods and services at reduced costs. The CEO of the exchange, Ayodeji Balogun also notes that commodity exchanges will play a major role in boosting regional trade going forward. Ayodeji Balogun  joins CNBC Africa for more.</p>


How vital are commodity exchanges to Africa’s regional trade pact?

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<p>Italian oil major, ENI, has announced a significant oil discovery offshore Ghana, which is sited on the Eban exploration prospect CTP block 4. Meanwhile in Nigeria, the Minister of State for Petroleum Resources, Timipre Sylva, says Nigeria will start exporting petrol in 2023. Sam Chidoka, Managing Director of Kairos Capital joins CNBC Africa for more.</p>


ENI makes significant oil and gas discovery offshore Ghana

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<p>Nigeria&#8217;s total debt stock was 33.1 trillion naira as at the first quarter of 2021 and according to the Medium-Term Expenditure Framework, new borrowings totaling about15 trillion naira is expected between 2022 and 2024. The document also has an oil price benchmark of $57 a barrel for the year 2022 and projects an average inflation rate of 13 per cent. Chamberlain Peterside, CEO of Xcellon Capital Advisors joins CNBC Africa for more.</p>


MTEF: Nigeria’s new borrowings to hit 15 trillion naira by 2024

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<p>Nigeria is projecting a 4.2 per cent growth in 2022 according to the Minister of Finance, Budget and National Planning, Zainab Ahmed. Meanwhile, holders of refining licences in the Nigeria will be able to purchase domestic crude oil supply in naira as indicated in the recently passed Petroleum Industry Bill. Paul Alaje, Senior Economist at SPM Professionals joins CNBC Africa for more.</p>


financial markets

‘We see a big recession in the making’: Top CEOs are fearing the worst in Europe

Ramping up Africa’s climate resilience for inclusive post-Covid-19 recovery

African Enterprise Initiative: How Nigeria plans to leverage the AfCFTA

Nigeria to receive nearly 8mn COVID-19 vaccines by August

Nigerian banks: Benefits of Holdco Structure

How Nigeria’s economy can grow sustainably post-COVID

Breaking down Nigeria’s budget implementation for 2020

CBN publishes framework for payment service banks

African Anti-Corruption Day: Examining progress made so far

ASR Africa to construct oncology & diagnostic centre in Kwara State

Nigeria’s Senate passes 2021 supplementary budget

AVCA: African venture capital deal volumes over twice as much in 2020

Driving reforms in business & politics – Lessons from Cyprus

How vital are commodity exchanges to Africa’s regional trade pact?

ENI makes significant oil and gas discovery offshore Ghana

MTEF: Nigeria’s new borrowings to hit 15 trillion naira by 2024

Nigeria targets 4.2% growth in 2022

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financial markets

‘We see a big recession in the making’: Top CEOs are fearing the worst in Europe

Ramping up Africa’s climate resilience for inclusive post-Covid-19 recovery

African Enterprise Initiative: How Nigeria plans to leverage the AfCFTA

Nigeria to receive nearly 8mn COVID-19 vaccines by August

Nigerian banks: Benefits of Holdco Structure

How Nigeria’s economy can grow sustainably post-COVID

Breaking down Nigeria’s budget implementation for 2020

CBN publishes framework for payment service banks

African Anti-Corruption Day: Examining progress made so far

ASR Africa to construct oncology & diagnostic centre in Kwara State

Nigeria’s Senate passes 2021 supplementary budget

AVCA: African venture capital deal volumes over twice as much in 2020

Driving reforms in business & politics – Lessons from Cyprus

How vital are commodity exchanges to Africa’s regional trade pact?

ENI makes significant oil and gas discovery offshore Ghana

MTEF: Nigeria’s new borrowings to hit 15 trillion naira by 2024

Nigeria targets 4.2% growth in 2022

News Tips

Advertise With Us

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