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FirstFT: Central bankers call for quick action to curb inflation

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of the world Senior central bankers have warned That the era of low interest rates and moderate inflation came to an end following the “massive geopolitical shock” of Russia’s invasion of Ukraine and the Covid-19 epidemic.

At the annual conference of the European Central Bank, Christine Legard, President, Jay Powell, Chairman of the Federal Reserve, and Andrew Bailey, Governor of the Bank of England, called for swift action to curb inflation.

According to them, failure to raise interest rates quickly enough could allow high inflation to assimilate and ultimately require more drastic action by central banks to bring down price growth.

“The process is likely to involve some pain, but the worst pain will be if they fail to cope with this high inflation and allow it to continue” – Jay Powell

In a conversation in Sinatra, Portugal, central bank chiefs also warned that the splitting of the global economy into competing blocs risks breaking the supply chain, reducing productivity, raising costs and reducing growth.

Do you think central bankers are taking the right approach to curbing inflation? Share your thoughts on firstft@ft.com. Thank you for reading FirstFT Europe / Africa. Here’s the rest of today’s news – Jennifer

The latest from the war in Ukraine:

  • Russian nuclear blockade: Moscow is using talks aimed at ending the siege of Ukraine’s seaports Control the Black SeaSaid the chief negotiator of Kyiv.

  • NATO: Joe Biden’s administration has expressed support The acquisition of Turkey Of American fighter jets after Ankara vetoed the accession of Finland and Sweden to NATO. The war caused the Alliance to do so Bring back his Cold War pose.

  • Sanctions: Britain imposed Sanctions on Vladimir PutinOne of the richest oligarchs in Russia, along with a few more details.

  • opinion: Beijing emerges victorious from the ongoing conflict between Moscow and the democratic world, Writer Kirill Rogov writes.

1. UK profit targets erased by sale There have been ventures that have been made public through a merger with a specialty acquisition company in the last two years Lost an average of 61 percent Their value when investors throw away hot start-ups of yesteryear.

2. Megadeals are flooding global mergers and acquisitions A wave of big deals The volume of mergers and acquisitions reached $ 2 billion In the first half of the year, with 25 deals worth more than $ 10 billion announced, even as inflation, rising interest rates and the Ukraine war damaged security and caused significant deals to fail. The total volume of the deal fell by one-fifth from the peak of 2021.

3. Three arrows fall for disassembly The crypto hedge fund, which is based in Singapore and registered in the British Virgin Islands, has Fell into dismantlingBecomes the latest victim of the high-profile credit crunch sweeping the digital assets market.

4. Terrorists behind the 2015 terrorist attack in Teklan were sentenced to life in prison French court Convicted 20 men Of carrying out or aiding Islamist terrorist attacks that killed 130 people in Paris in 2015, following a trial that examined the justice system and the animals have painful memories of the victims.

5. Jim Chanos’ next “big short” The hedge fund manager, best known for predicting the collapse of Enron two decades ago, is raising several hundred million dollars for A fund that will take short positions In U.S.-traded real estate investment trusts, which hold first-generation warehouse data centers, he told the Financial Times.

Thanks to everyone who took part in the survey yesterday. 52% of respondents said the G7 is right Water fossil fuel promises On energy supply concerns, while 40 per cent said no.

The day ahead

Economic Data United Kingdom Advertiser Final Gross Domestic Product in the First Quarter, Consumer Trends Report and June Housing Price Data. Unemployment figures are unknown for the EU, Germany and Italy, as are France’s producer price indices and June’s consumer price indices. ECB President Christine Lagard delivers a speech at the first meeting of the Veil Marking Agreement, organized by Renew Europe.

The UK steel tariff will expire Five “protection” measures introduced in 2018 during Donald Trump’s tenure to protect manufacturers from cheap international steel are set to expire. The Department of International Trade is supposed to Approve plans Extend the tariffs for another two years.

EY inverter The American boss of the Big Four company, Kelly Greer Due to retirement After a power struggle with World Chief Carmine Di Sibio. Greer will be replaced by Julie Boland, who won the partner election in February. The moves come when EY is considering plans to split its audit and consulting practices.

The profits of the Walgreens Boots Alliance The pharmacy chain reports third quarter results days after announcing it Abandoned the sale process For the Boots chain in the UK following the turmoil in the credit markets that led to bids below its expectations.

Spirit Airlines shareholders vote The vote will take place on the takeover of rival Frontier, first announced in February, which will give the combined company a capital value of more than $ 4 billion. Sujeet Indap Researcher The battle for takeover of the American budget airline in the latest edition of the Lex newsletter. Sign up To receive it in your inbox every Wednesday and Friday.

What else are we reading

The facility, the deceiver and the corruption crisis in tennis Few sports are suited to cheating like tennis. From the side, it can be difficult to distinguish between a player who is going through a bad day and a player who intentionally loses. This corruption is at the heart The story of Nicholas Kicker.

Nicholas Kicker serves on a clay court

World tennis has been struggling to fix problems for the past 15 years

Do carbon food labels change the way you buy? Buying eco-friendly food can be a challenge, as consumers demand “honest and transparent labeling of food.” find out How do your favorite items fit in a UK supermarket In terms of carbon cost with our interactive scales.

US infant formula crisis raises debate over market reform Abbott Laboratories, a $ 180 billion health company, is facing a political firestorm after a safety scandal forced it to close a plant in Michigan, causing a shortage of baby formulas and buying panic, which forced Washington to approve emergency shuttles over the air and dragged an investigation into A sector dominated by only two companies.

Hong Kong reinvention After three turbulent years of protests and the Corona virus epidemic, Chinese President Xi Jinping welcomed “New Age” to Hong Kong. But this future is expected to be less international and closer to the interests of mainland China. Beijing is tightening security ahead Shay’s visit To mark the 25th anniversary of the city’s delivery.

Armed robbery at the Tap Art Fair Shocking scenes Evolved this week in Maastricht when a man with a hammer smashed the glass-plated stand of the particularly prestigious jewelers Symbolic & Chase. The offender was in a group of four well-dressed men who stole unspecified items from the stand.

NFTs

French footballer Killian Mappa follows superstars Cristiano Ronaldo and Lionel Messi The world of tokens that cannot be changedBecomes an investor in a fantasy football platform supported by SoftBank Sorare.

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