<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-820x547.jpg" alt="" class="wp-image-424513" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Global-money-market-funds-see-big-inflows-in-the-week-to-April-26-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Woman holds U.S. dollar banknotes in front of Euro banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



April 28 (Reuters) &#8211; Investors put their cash in the relative safety of global money market funds in the seven days to April 26, on worries over a slowdown in global economic activity with the recent decline in U.S. companies&#8217; quarterly earnings feeding pessimism.



Data from Refinitiv Lipper showed investors purchased a net $42.68 billion worth of money market funds in the week to April 26, taking the cumulative inflows for the year to a massive $427.4 billion.



U.S. and European money market funds obtained $47.72 billion and $1.89 billion worth of inflows, respectively, during the week. But Asia funds suffered about $90 million worth of outflows.



Investors have sought out U.S. money market funds avidly this year on worries over a recession and concerns about the safety of uninsured bank deposits after the failure of two regional banks, including Silicon Valley Bank. In turn, money has been pulled from global equity funds, considered more exposed.



Among money market funds, Morgan Stanley Institutional Liquid Government securities fund, State Street US Government Money Market Fund and Invesco Government &amp; Agency Portfolio Fund led inflows during the week, receiving $12.15 billion, $8.1 billion and $4.6 billion, respectively.



Meanwhile, global equity funds saw $8.89 billion worth of net selling, the biggest weekly outflow in four weeks, undermined by lacklustre first-quarter results.



Investors sold tech and healthcare funds of $860 million and $441 million, respectively, while financials obtained a third weekly inflow worth $489 million.



Earnings from a wide range of companies, including 3M Co , General Motors Co, PepsiCo Inc, United Parcel Service Inc and McDonald&#8217;s Inc, provided a mixed picture of corporate profit and outlook.



Meanwhile, global bond funds drew $3.57 billion in inflows compared with net purchases of $124 million the previous week.



Government bond funds saw purchases of $3.15 billion after $1.68 billion worth of net selling in the previous week. Investors withdrew $407 million from short- and mid-term bond funds after three straight weeks of net buying.



Among commodities, precious metal funds obtained $656 million in their biggest weekly inflow in three weeks, while energy funds saw about $6 million worth of net buying after three weeks of net selling in a row.



Data for 23,940 emerging market funds showed investors sold $230 million worth of equity funds after four consecutive weeks of net buying. They also exited $130 million worth of bond funds.



(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru;Editing by Elaine Hardcastle)

FILE PHOTO: Illustration shows U.S. dollars and Euro banknotes

Global money market funds see big inflows in the week to April 26

<ul><li>Stocks slide as inflation scare drives uncertainty</li><li>UK inflation hits 9%, in Canada rises to 6.8%</li><li>German 2-year yield hits 2011 high on ECB rate hike bets</li></ul>



NEW YORK, May 18 (Reuters) &#8211; Global stocks plunged and the dollar strengthened for the first time in four sessions on Wednesday as concerns about rising inflation on economic growth soured sentiment.



The mood was underscored by a 9% surge in British consumer prices and a faster-than-expected acceleration in inflation in Canada.



British inflation surged to its highest annual rate since 1982 as energy bills soared, while Canadian inflation rose to 6.8% last month, largely driven by rising food and shelter prices, Statistics Canada data showed. <a href="https://www.reuters.com/markets/uk-inflation-hits-9-highest-since-modern-records-started-2022-05-18/">read more</a>



British inflation is now the highest among major economies in Europe, but prices are rapidly rising worldwide, forcing central banks around the globe to hike interest rates and tamp down growth as suggested by a modest decline in U.S. homebuilding in April.&nbsp;<a href="https://www.reuters.com/business/us-building-permits-dive-april-housing-starts-fall-2022-05-18/">read more</a>



Soaring prices and material shortages have already hit homebuilding, the sector of the economy most sensitive to rates. But the U.S. Commerce Department report also showed a record backlog of houses to be built, indicating a decline in homebuilding potentially might be marginal.



Adding to the gloom caused by inflation were earnings results from Target Corp&nbsp;<a href="https://www.reuters.com/companies/TGT.N" target="_blank" rel="noreferrer noopener">(TGT.N)</a>, whose quarterly profit halved as it warned of a bigger margin hit this year due to rising fuel and freight costs.&nbsp;<a href="https://www.reuters.com/business/retail-consumer/target-profit-halves-rising-costs-warns-bigger-margin-hit-2022-05-18/">read more</a>



Target shares plummeted 24.88%, its biggest one-day percentage drop since the &#8220;Black Monday&#8221; stock market crash on Oct. 19, 1987, a day after Walmart Inc <a href="https://www.reuters.com/companies/WMT.N" target="_blank" rel="noreferrer noopener">(WMT.N)</a> warned of similar margin squeezes and saw its stock drop 11.4% for its biggest one-day percentage fall since Oct. 16, 1987.



&#8220;It was Walmart yesterday and everybody thought it was a one-off,&#8221; said Dennis Dick, head of markets structure and a proprietary trader at Bright Trading LLC in Las Vegas. &#8220;Now that Target misses earning a lot more than Walmart even did, they&#8217;re scared that consumer is not as strong as everybody think it is.&#8221;



MSCI&#8217;s gauge of stocks across the globe&nbsp;<a href="https://www.reuters.com/quote/.MIWD00000PUS" target="_blank" rel="noreferrer noopener">(.MIWD00000PUS)</a>&nbsp;shed 2.74%, while in Europe, the pan-regional STOXX 600 index&nbsp;<a href="https://www.reuters.com/quote/.STOXX" target="_blank" rel="noreferrer noopener">(.STOXX)</a>&nbsp;closed down 1.14%.



On Wall Street, the Dow Jones Industrial Average&nbsp;<a href="https://www.reuters.com/quote/.DJI" target="_blank" rel="noreferrer noopener">(.DJI)</a>&nbsp;fell 3.56%, the S&amp;P 500&nbsp;<a href="https://www.reuters.com/quote/.SPX" target="_blank" rel="noreferrer noopener">(.SPX)</a>&nbsp;lost 4.03% and the Nasdaq Composite&nbsp;<a href="https://www.reuters.com/quote/.IXIC" target="_blank" rel="noreferrer noopener">(.IXIC)</a>&nbsp;dropped 4.73%.



The declines for the S&amp;P 500 and Dow marked their biggest one-day percentage declines since June 11, 2020.



Few analysts are willing to predict the end to selling after a bruising first five months of the year for risk assets given the magnitude of macroeconomic uncertainty, with many anticipating market volatility will be the norm for some time.



The U.S. dollar gained ground as the sell-off in risk assets boosted the safe-haven appeal of the greenback, which was on pace to snap a three-session losing streak, a day after Fed Chair Jerome Powell pledged the U.S. central bank would ratchet up rates as high as needed to combat rising inflation.



The dollar index rose 0.581%, with the euro down 0.8% to $1.0463. The Japanese yen strengthened 0.92% to 128.23 per dollar.



Treasury yields fell, although a steep path for rates remained the prevailing market consensus as the benchmark 10-year note yield hit a one-week high of 3.015% after Powell&#8217;s hawkish comments.



The yield fell 8.1 basis points to 2.890% on Wednesday after a soft U.S. housing starts number.



The German two-year government bond yield shot to 0.444%, its highest since November 2011 after more hawkish central banker comments, and last was up 1.6 basis points at 0.386%. The European Central Bank&#8217;s Klaas Knot said on Tuesday that a 50-basis-point rate hike in July was possible if inflation broadens.



Gold prices were little changed despite the risk-off environment as looming U.S. interest rate hikes and a resurgent dollar dimmed the metal&#8217;s shine.



Spot gold was up 0.1% at $1,816.06 an ounce.



Oil prices dipped in volatile trade, reversing early gains as traders grew less worried about a supply crunch after government data showed U.S. refiners ramped up output.&nbsp;<a href="https://www.reuters.com/markets/europe/oil-prices-climb-hopes-china-demand-recovery-2022-05-18/">read more</a>



U.S. crude settled down 2.5% at $109.59 per barrel and Brent settled at $109.11, down 2.52% on the day.



Reporting by Herbert Lash and Chuck Mikolajczak; additional reporting by Devik Jain in Bengaluru; editing by Jonathan Oatis



<a href="https://eb2.3lift.com/pass?tl_clickthrough=true&amp;redir=https%3A%2F%2Frtb-us-west.linkedin.com%2Flax%2Fclk%3Ftrk%3DCwEAAAGA219j8O5J_QPuGAn69j66GLwCHyGelZRBrDjyMVm7BsD6-jnV210a2QvMUKaeVQP366tqUx7nZnsNgg1q_Pk8Rs6R7b9eDmSVIvq2EIjXBx6a6iLhyJ8rpEs-fGvpmAH47UwNX1mg9n6pqbjowUTUik9jcDrXN7dh6juu8a2pa1yX2I1DFVOoPwJeVGOY69hl5VyJqX41IrJG-Wr_e8yGeSfaPkKqQ9daiJmUtHtTCJ0FKHcRswkAdh2WyRqKqSMyqYt8g1mdY7mQdsihXikCiHhI9lYqzpUVBX38rDy80CFcRSRc4d7V1sIvtxsQKO5iBf8lVnI4-ocVTPTrd05nUMe3W_TjS7NvC9FeYN9X0x7wvxPBaSga-QocRM8EOqMBN-mlirKdG64aJbsusHW3-1Ad5hh-GMHxRp5qMWUx0TMp7G0inPcBbeymeizCKu024cZjR0xJuy6SoYOlLkDUiyvc93dpu6tMTT4JdZRKfu_dllWVHra9RWKts-oNv4sEQk_UdRgZ4sdvbXyYTnmB9Gj4FEQDvxIM_e5ytenWcPW3bgf7C7f_J3xF_mOXMdNMRSs2udbLsi62UO-45af7ncdYaysxir-_9VQQBiiXVSo2GkQ7BPXkYtPnlqvPA3F09pr0N5CGCN98gAVg5xXVUXpiswH6HGS03MqDLD-krOTI-XHfIIZPpmg1bK692JpWo5fM5Fhm5XfjIXQCGj7Gm1mNqv5E5UlxyoSFy3Pkm93tm6dWmIpKJ2RG1zKjUazAu_GJypG6RGU8fsjc1CjLUG7pUYm1F1tfWaIlVxO9aUxvOADDFmko8vIOFezcDI6OuYN_Gnzf15qS3KtBrVivet1QadIvksRivupN6aIWlgzw_GlIDD8TEF6SxOr1Hf_SOvnBoBKOkzuum-Rb6dyyMHPpazLP5OYowiRQeZRTQBiu5ymdaPpRtNvRlnf8QdVPejrTxmImamGb7HVIU2CNHMj_suG3hVjWS1AyCfxv7S0sFgY8oEWFzhnalKkVY9PLYWVGXVR7OTRkSk9hZfoHKd0T6edKToABZRQGp486-1_Rbk-fCKYd8-Lj0NzfF8hNJaUZs2KcTYUrqJMZsI1o_Wtd6wx8OcOKutJdAzjVYfiW-peWKY-F6uRPqMmYWZS27X4AdXOi3Dd0nc4M7An-pAANfFei8iNjigrmUROSeCmOxGcGFubkfIyxn6oGlIfmRAyytzVLVaS8R2OX9yTpdajr3JJq59h8QOiaLxq67BOqAuMwZNxuHDT87xMZpBxsYeAb-zIgyptDSATW1wO1kD_UPb7dLVPXBus9uQ3it3n67W4P7DFoMeyFLRW7MKXWnqPWnEgQrEEZFMrdkrSc64Gvk54IuJWwpHikdpbTgut2rvgufF90RA0vX39NFfoZ38sdioILXyt6Je1rXHd-Ess3zHIbKiLt-2wTtkP0-IJtUjKLj-4c5sFy6_vtsENOH4EO05isy0CRL-WVeLR4qcaf9i3NJIzCz31oVoUJP5cn8W4%26action%3Dclick%26laxrid%3Dc06f007b-ef01-4607-ba8a-e26f46b14d2c%26laxbid%3D2%26eid%3D3%26crtype%3Dvid%26laxerid%3D12472029946156324700670%26adfmt%3D6%26urle%3DCwEAAAGA219j_FqDOJJoNIHnPGG0mad91_hcM9a4b2gEzdqU-VV-yAQjAfXbgeQyZ6mZBxfLCH5XLh5C6_zVaYNf4ReAKhscXzogY_sfjK4-equ9EYAO65RMMM1cf65vJ98JsfV3Sehbka-UJVMKNZxq_4sfyZ_2zsxx9KW13_dh2Y5TtCfdwB-NUKJZ5r3iq1-zBQyWjLpnwRKMZ4L_jdpIM5K9DAZ8hRR-kRTyLXxGsSGrPcL-favPxQo28qy16TFG3YC-%26urlhash%3Ddzgv&amp;pr=1.094&amp;bc=2.379&amp;aid=12472029946156324700670&amp;bmid=6250&amp;biid=6250&amp;sid=66552&amp;brid=556676&amp;adid=173662614&amp;crid=29572004&amp;ts=1652947903&amp;bcud=2379&amp;ss=12&amp;cb=64814" target="_blank" rel="noreferrer noopener"></a>

Trading Board Is Showing A Crash In Stok Exchange Market

Stocks pummeled by growth worries, U.S. dollar climbs

EM FX, stocks down amid broader risk-off



Indian rupee at record low; inflation data due 1200 GMT



Yuan at 20-month low



Czech crown bounces from eight-week lows



S. Africa gold, mining March data due 0930 GMT



By Anisha Sircar



May 12 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies slipped on Thursday as the greenback hit its highest&nbsp;level in two decades&nbsp;after hotter U.S. inflation data, while regional shares tumbled to&nbsp;fresh 22-month lows on pressure from&nbsp;stock markets in India and China.



MSCI&#8217;s index of emerging market (EM) currencies&nbsp;.MIEM00000CUS&nbsp;resumed a descent that began in&nbsp;early-April, falling 0.6% to return to its weakest level since November 2020 after a breather in its last two sessions.



Inflation pressures in parts of EM are rising, even though U.S. inflation might have peaked, said Natalia Gurushina, EM Fixed Income economist at VanEck.



Data on Wednesday&nbsp;showed U.S. consumer price growth is likely to stay hot for a while. Higher-than-expected inflation lifted&nbsp;the dollar&nbsp;=USD&nbsp;and dragged stocks as it suggests a more robust Federal Reserve response this year.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X315F&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;Some EM central banks will have to keep on hiking – in a sense &#8216;matching&#8217; the Fed&#8217;s hikes – even though EM inflation is driven by exogenous factors, but the problem is that global supply shocks are feeding into core inflation, and this passthrough might be higher than in normal pre-COVID years,&#8221; Gurushina added.



Stocks&nbsp;.MSCIEF&nbsp;plunged 2.3% to a 22-month low, dropping eight out of its nine previous sessions.



Indian shares&nbsp;.NSEI,&nbsp;.BSESN&nbsp;dropped nearly 2% and the rupee&nbsp;INR=IN&nbsp;hit an all-time low for a second time this week ahead of domestic retail inflation numbers, with a Reuters poll expecting it to surge to an 18-month high.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2X40XW&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL3N2WY21A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



China stocks&nbsp;.SSEC,&nbsp;.CSI300&nbsp;pared gains to close upto 0.4% lower, while the yuan&nbsp;CNY=&nbsp;slipped 0.9% to a 20-month low.



The South African rand&nbsp;ZAR=&nbsp;fell 0.8%, ahead&nbsp;of mining data and after new COVID-19&nbsp;cases crossed 10,000 for first time since January, stoking fears of a fifth wave.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N2WE008&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In Central Europe, the Czech crown&nbsp;EURCZK=&nbsp;bounced 0.2% a day after plumbing two-month lows after Czech Republic President Milos Zeman appointed Ales Michl, a central bank board member who has opposed policy tightening, as the bank&#8217;s new governor, signalling a likely end to rate hikes.&nbsp;CEE/



For GRAPHIC on emerging market FX performance in 2022, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ATOPEMRG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



For CENTRAL EUROPE market report, see&nbsp;CEE/



For TURKISH market report, see&nbsp;.IS



For RUSSIAN market report, see&nbsp;RU/RUB



(Reporting by Anisha Sircar and Lisa Pauline Mattackal in Bengaluru; editing by Uttaresh.V)

Stock market exchange graph price drop with red numbers investment lose of business financial digital background – Candle stick charts stock crash crisis fall risk decreasing arrow down trend sell

EMERGING MARKETS – FX returns to 18-month lows as dollar gallops higher

* Asia stocks drop to near 2yr low, U.S. equity futures struggle



* Dollar hits 2yr highs on AUD, NZD



* Bitcoin tumbling, hits new 16-month low



By Tom Westbrook



SINGAPORE, May 12 (Reuters) – Asian stocks fell to an almost two-year low and the dollar rose to multi-year highs on Thursday as data showed U.S. inflation persistently hot, deepening investor worries about the economic toll of aggressive interest rate hikes to tame it.



U.S. markets whipsawed after the news, then closed sharply lower. S&amp;P 500 futures gave up early gains to fall 0.2% in the Asia session. European futures also fell, with EuroSTOXX 50 futures down 2% and FTSE futures down 1.6%.



Bitcoin, leading a fire-sale of risky assets as rate hikes gather steam, fell 7% to $26,970. It was near $40,000 a week ago and is 60% beneath its peak six months ago.



The growth-sensitive Australian and New Zealand dollars fell about 0.8% to almost two-year lows. The Chinese yuan slid to a 19-month trough.



Headline U.S. consumer prices rose 8.3% for the 12 months to April, slower than the 8.5% pace of a month earlier, but higher than market forecasts for 8.1%. Traders said it underscored concern that rates will rise quickly in response.



“We’re now very much embedded with at least two further (U.S.) hikes of 50 basis points on the agenda. For equity markets that really is the end of free money,” said Damian Rooney, director of institutional sales at Argonaut in Perth.



“I think we probably were delusional six months ago with the rise of U.S. equities on hopes and prayers and the madness of the meme stocks, and suddenly were going a little bit back to what is reality,” he said.



MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2% to a 22-month low. Japan’s Nikkei fell 1.7%.



Treasuries were steady in Asia, but selling at the short end and a rally at the longer end has flattened the yield curve as investors brace for near-term hikes to hurt long-run growth.



The benchmark 10-year Treasury yield fell six basis points (bps) overnight and dropped a further 2.6 bps in Tokyo trade to 2.8967%. The gap between two-year and 10-year yields narrowed 3.5 bps.



“There should be a tipping point in how far the Fed can be pressed before odds clearly point towards a hard landing,” said NatWest Markets’ U.S. rates strategist Jan Nevruzi.



SELL IN MAY



The rates outlook is driving up the U.S. dollar and taking the heaviest toll on riskier assets that shot up through two years of stimulus and low-rate lending.



The Nasdaq is down nearly 8% in May so far and more than 25% this year. Hong Kong’s Hang Seng Tech index slid 1.5% on Thursday and is off more than 30% this year.



Cryptocurrency markets are also melting down, with the collapse of the so-called stablecoin TerraUSD highlighting the turmoil as well as the selling in bitcoin and next-biggest-crypto, ether.



A weakening growth picture outside the United States is battering investor confidence, too, as war in Ukraine threatens an energy crisis in Europe and lengthening COVID-19 lockdowns in China throw another spanner into supply chain chaos.



Nomura estimated this week that 41 Chinese cities are in full or partial lockdowns, making up 30% of the country’s GDP.



Property developer Sunac China said it missed a bond interest payment and will miss more as China’s real estate sector remains in the grip of a credit crunch.



The yuan fell to a 19-month low of 6.7631 and has dropped almost 6% in under a month.



The Australian dollar fell 0.8% to a near two-year low of $0.6879. The kiwi slid by a similar margin to $0.6240, though the euro and yen held steady to keep the dollar index just shy of a two-decade peak.



Sterling was at a two-year low of $1.2204.



In commodity trade, oil wound back a bit of Wednesday’s surge as growth worries dampened fear of gas supply disruptions in Europe.



Brent crude futures fell 1.3% to $106.90 a barrel.



British activity and growth data is due later in the day.



(Editing by Muralikumar Anantharaman and Kim Coghill)

(Photo: Flickr/QuoteInspector.com)

SHARES TUMBLE AS STUBBORN U.S. INFLATION STOKES WORRIES ON RATES, ECONOMY

KEY POINTS



<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>



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



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.



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.



“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>.



“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.”



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



“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.



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.



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.



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



“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.



“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.”



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.



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.



“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.



“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.”



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



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.



“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.”



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.



“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.



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.



<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.

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

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Restarting the economy activities during Covid-19 is a daunting yet very real task. Saving lives while balancing livelihoods remains a top priority for any government. We remain at risk of higher inflation and economic slowdown. So what lies ahead? Wei Li, Global Chief Investment Strategist at BlackRock joins CNBC Africa for more.

BlackRock’s mid-year outlook for global markets

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Traditional banking and financial services has been disrupted by the accelerated need for digitisation and fintech amid the Covid-19 crisis. Joining CNBC Africa to unpack how global markets and African financial services are surviving the current crisis is John Garvey, Global Financial Services leader at PwC.

PwC on the outlook for traditional financial services amid COVID-19

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Despite the recovery in share prices globally and in South Africa following the sharp sell-off in March, it is evident that significant downside risk remains due to muted consumer demand, distressed companies, and consensus of a global recession amidst no clear timeline for a return to normality. Market risks are also evidenced by necessary and unprecedented fiscal and monetary stimulus interventions domestically and globally. This is the word from Benedict Mongalo, Chief Investment Officer at Independent Fund Manager, Novare Investments who joins CNBC Africa for more.

Finding value in SA’s markets

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The drastic fluctuations have caused panic and lots of anxiety. Despite all the market drama, investment firm Alexander Forbes says it’s important to remember that after every crash – there is a recovery. And this has been proven by history. Janina Slawski: Head of Investment Consulting, Alexander Forbes joins CNBC Africa for more?

Alexander Forbes’s Janina Slawski on lessons from past market plunges

Alexander Forbes’ Janina Slawski on lessons from past market plunges

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The coronavirus economic shock is expected to plunge Africa to its weakest growth rate since the 1990s. That’s according to preliminary research from NKC African economics. Key sectors such as tourism, exports and trade are expected to get knocked inflating the continents challenges around unemployment and poverty. Francois Conradie, Senior Political Economist from NKC African Economists joins CNBC Africa for more.

NKC African Economists: COVID-19 shock to Africa’s growth to 1990 lows

NKC African Economists: COVID-19 shock to slow Africa’s growth to 1990 lows

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South Africa&#8217;s Reserve Bank says its latest round of monetary support in which it will be buying bonds in the secondary market is not quantitative easing despite market commentators saying that it is. CNBC Africa’s Chris Bishop spoke to Deputy SARB Governor, Fundi Tshazibana to set the record straight.

How the Reserve Bank plans to revive the economy

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While most companies prepare to go on lock-down at midnight tomorrow – the JSE will continue, business as usual. Africa’s largest exchange was recognised as an essential service exempt from the three week lock-down by the country’s President Cyril Ramaphosa. Joining CNBC Africa for more is Leila Fourie, CEO, JSE.

Africa’s largest exchange to remain open during lock-down

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South Africa is grappling with a national lock-down to contain the spreading of COVID-19 in a slowing global economy. It also has the headache of an imminent Moody’s downgrade and an economy in recession. John Orford, Portfolio Manager at Old Mutual Investment Group joins CNBC Africa for more.

COVID-19: Why this Fund Manager believes now is the best time to invest

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The last month has seen the most brutal stock market crash that most investors have experienced. Is it time to buy the crash? Peter Armitage, CEO and Co-Chief Investment Officer at Anchor Capital joins CNBC Africa for more.

Is it time to buy the crash?

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This week Zimbabwe suspended the transfer of local shares in dual-listed companies to foreign bourses for the next 12 months. Joining CNBC Africa to unpack more on this and the developments of the declaration of COVID-19 being a national disaster in Zimbabwe is Batanai Matsika, Head of Research at Morgan &#038; Co.

Zim declares COVID-19 a national disaster

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In morning trade oil rose by $1 to around $30 per barrel after the recent sharp declines due to the impact of the covid-19 pandemic and oil price war between Saudi Arabia and Russia, joining CNBC Africa to unpack the oil market outlook as well the global stock market overview is Stephen Innes, Global Chief Markets Strategist at AxiCorp.

Will a COVID-19 triggered recession

Will a COVID-19 triggered recession, oil price war lead to a depression?

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South African businesses are just starting to feel the pinch of COVID-19. And in this already difficult climate, can they afford much more bad news? Joining CNBC Africa to discuss how they can prepare for the worst is Walter Ehrlich, Risk Intelligence Committee Member at the Institute of Risk Management South Africa.

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

BlackRock’s mid-year outlook for global markets

PwC on the outlook for traditional financial services amid COVID-19

Finding value in SA’s markets

Alexander Forbes’ Janina Slawski on lessons from past market plunges

NKC African Economists: COVID-19 shock to slow Africa’s growth to 1990 lows

How the Reserve Bank plans to revive the economy

Africa’s largest exchange to remain open during lock-down

COVID-19: Why this Fund Manager believes now is the best time to invest

Is it time to buy the crash?

Zim declares COVID-19 a national disaster

Will a COVID-19 triggered recession, oil price war lead to a depression?

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global markets

Global money market funds see big inflows in the week to April 26

Stocks pummeled by growth worries, U.S. dollar climbs

EMERGING MARKETS – FX returns to 18-month lows as dollar gallops higher

SHARES TUMBLE AS STUBBORN U.S. INFLATION STOKES WORRIES ON RATES, ECONOMY

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

BlackRock’s mid-year outlook for global markets

PwC on the outlook for traditional financial services amid COVID-19

Finding value in SA’s markets

Alexander Forbes’ Janina Slawski on lessons from past market plunges

NKC African Economists: COVID-19 shock to slow Africa’s growth to 1990 lows

How the Reserve Bank plans to revive the economy

Africa’s largest exchange to remain open during lock-down

COVID-19: Why this Fund Manager believes now is the best time to invest

Is it time to buy the crash?

Zim declares COVID-19 a national disaster

Will a COVID-19 triggered recession, oil price war lead to a depression?

Here’s what SA businesses can do to cushion COVID-19 impact

News Tips

Advertise With Us

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