S&P Global Report Says EU and UK Are In Recession, Putin Thinks West Is Greedy

Today’s stormy global economy has everyone on their toes as inflation wreaks havoc on ordinary people’s wallets and energy prices continue to rise worldwide. According to Credit Suisse, “the worst is yet to come” as analysts at the global investment bank believe the European Union (EU) and the UK are already in recession. S&P Global has a similar hypothesis, as a report published by the Manhattan firm explains that the UK is currently in a full-year recession.

Rupture Nord Stream pipeline heightens tensions between Russia and the West – Putin claims ‘end of western hegemony is inevitable’

The global economy is looking even worse after the Nord Stream pipeline rupture, as many people believe that the conflict between the West and Russia has intensified. The United Nations says the destruction may have been the largest methane release in history. In addition, the problem with the Nord Stream pipeline means that Europe will have more difficult access to natural gas this winter. The price of natural gas in the EU has skyrocketed to a lifetime high, along with many European energy sources.

S&P Global Report Says EU and UK Are In Recession, Putin Thinks West Is Greedy
The rupture in the Nord Stream pipeline has heightened tensions and many believe the world is spiraling into World War III.

In addition, both sides blame each other for the Nord Stream pipeline rupture, as Vladimir Putin called the act an “unprecedented sabotage” and an “act of international terrorism.” Meanwhile, US President Joe Biden said the Nord Stream leak was also a “deliberate act of sabotage”, noting that the Kremlin blamed the US for the breach was simply not true. Putin also noted in a recent speech that “the end of Western hegemony is inevitable.” The speech translated by Konstantin Kisin on September 30 explains that Putin thinks the West is greedy and wants to enslave countries like Russia.

Kisin’s translation goes on to say that Putin noted that the West is using finance and technology to subjugate other nations. The West collects a ‘hegemon tax’ according to the Russian president. “They don’t want us to be free, they want the Russians to be a mob of soulless slaves,” Putin told those attending the event.

There was a strong reaction from those present and one person say:

We beat them all, we kill them all, we loot all their stuff. It will be what we love to do.

Credit Suisse and S&P Global Reports note that Europe and UK are already in recession – ‘Europe faces a difficult and uncertain geopolitical and economic outlook’

Amid the heightened tension, a Credit Suisse report says the UK and Europe are already in recession and the US is “flirting” with them. The global investment bank analyst explained that part of the weight came from central banks raising interest rates. “Higher rates combined with lingering shocks are driving us to lower GDP forecasts,” the Credit Suisse report details. “The Eurozone and the UK are in recession, China is in a growth recession and the US is flirting with a recession.”

The Credit Suisse report adds:

Crucially, the rising share of price categories above the central bank’s inflation target levels shows that inflation is expanding from a limited group of supply shock-related factors to more general inflation. This broadening requires tighter policies and weaker economies as it increasingly reflects tight labor markets.

Credit Suisse’s report follows recent statements by Citadel chief executive Ken Griffin at a conference last Wednesday. Griffin explained that Citadel is “very focused on the possibility of a recession.” Furthermore, in a report from S&P Global, analysts explain that the UK and Europe are already in recession and that the war between Ukraine and Russia is exacerbating the region’s bleak economy. Paul Watters, chairman of S&P Global’s regional credit conditions, says the EU has a rough winter ahead and the European economy faces heightened credit risks.

S&P Global Report Says EU and UK Are In Recession, Putin Thinks West Is Greedy

Watters believes that the EU’s measures to put price caps on energy will protect Europeans from inflationary pressures this winter. “Government tax relief, especially the cap set for typical household energy bills, will significantly protect household budgets from even greater inflationary pressures in the winter,” Watters claims. “This, along with the continued resilience of the labor market, are the main reasons why we do not expect the UK economy to underperform.”

The S&P Global report continues:

Europe is facing a difficult and uncertain geopolitical and economic outlook, as Russia’s political risk appetite appears to be increasing following the loss of territory in Ukraine, and exorbitant energy prices are fueling inflation, prompting interventions to support consumers and businesses, with central banks to quickly recalibrate interest rates.

Meanwhile, the US Dollar Index (DXY) has fallen from recent highs nine days ago, and many fiat currencies worldwide have recovered against the greenback. The euro is up 2.15% against the US dollar in the past seven days, and the British pound is up 3.95% this week. However, the pound has fallen 14.98% in the past six months and the euro has fallen 11.25% against the greenback. The Russian ruble, on the other hand, has risen by 42.44% against the US dollar over the past six months.

Tags in this story

Citadel CEO Ken Griffin, Credit Suisse, Credit Suisse Report, Dollar Index, DXY, Economy, Energy Crisis, EU Euro, Europe, Hegemon’s Tax, Inflation, Joe Biden, Konstantin Kisin, Kremlin, Methane Leak, Natural Gas, Nord Stream, Nord Stream Pipeline, OIL , Paul Watters, Recession, Russia, Russian President, Russian Ruble, S&P Global, S&P Global report, The West, British Pound, British Pound Sterling, US President, Vladimir Putin

What do you think of the reports that Europe and the UK are already in recession? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news leader at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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