International
UK faces ‘recession risks’ as interest rates bite
UK faces ‘recession risks’ as interest rates bite
The UK economy is on course to shrink in the three months to the end of September and could tip into recession, a closely-watched survey suggests.
The S&P Global/CIPS UK purchasing managers’ index found rising interest rates and weaker household spending contributed to a sharp drop in demand for goods and services in August.
The index fell to 47.9 in August – its lowest level in two and half years – down from 50.8 in July.
Anything below 50 marks a contraction.
Economists suggested that PMI figures, which are a measure of the health of the economy, showed that the Bank of England’s efforts to tame inflation – the rate at which prices rise – were beginning to work.
After the report, the pound fell and City analysts lowered their expectations of where the Bank’s interest levels would peak to 5.5% from 6%. Rates currently stand at 5.25%, up from close to zero in late 2021.
However, Chris Williamson, chief business economist at S&P Global Market Intelligence, said the figures also suggested “the fight against inflation is carrying a heavy cost in terms of heightened recession risks”.
“A renewed contraction of the economy already looks inevitable, as an increasingly severe manufacturing downturn is accompanied by a further faltering of the service sector’s spring revival,” he said.
According to official figures, UK inflation was 6.4% in July which, although slower than the previous month, is still near record levels and much higher than the government’s aim of 2%.
In response the Bank has put up interest rates 14 times since 2021, hoping that by making it more expensive to borrow money, consumer demand will cool and price rises will slow.
However, repeated interest rate rises tend to drag on economic growth as it becomes more expensive for consumers and businesses to borrow and spend.
Paul Dales, economist at Capital Economics, said the survey would encourage the Bank “that higher rates are working” but added that economic would soon contract and a “mild recession is on the way”.
According to the PMIs, both the UK activity fell in both the manufacturing and services sectors in August.
Rhys Herbert, a senior economist at Lloyds Bank, added that “the sharper-than-expected drop in retail sales in July” was also a warning of “further possible weakness as we enter autumn”.
“Some businesses continue to also experience challenges with recruitment, resulting in upward pressure on wages,” Mr Herbert added.
Pay has been rising at a record rate but the Bank of England has warned that wage increases will make it harder to get inflation down.
UK faces ‘recession risks’ as interest rates bite
International
Israeli strikes pound central Beirut, suburbs
Israeli strikes pound central Beirut, suburbs
BEIRUT: Israeli strikes pounded a densely-populated part of the Lebanese capital and its southern suburbs on Tuesday, hours ahead of an anticipated announcement of a ceasefire ending hostilities between Israel and Lebanese armed group Hezbollah.
A strike on Beirut hit the Noueiri district with no evacuation warning and killed at least one person, Lebanon’s health ministry said in a preliminary toll.
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Minutes later, at least 10 Israeli strikes hit Beirut’s southern suburbs. They began approximately 30 minutes after the Israeli military issued evacuation orders for 20 locations in the area, the largest such warning yet.
As the strikes were under way, Israel’s military spokesperson Avichay Adraee said the air force was conducting a “widespread attack” on Hezbollah targets across the city.
Israeli strikes pound central Beirut, suburbs
ARAB NEWS
International
Over $100m wasted, Trump mocks Democrats for targeting him
Over $100m wasted, Trump mocks Democrats for targeting him
Former U.S. President Donald Trump has fiercely criticised the legal cases brought against him, calling them “empty and lawless”.
He accused Democrats of weaponising the judicial system to target him as a political opponent.
In a strongly worded statement, Trump alleged that over $100 million in taxpayer money had been wasted in what he described as a politically driven effort to undermine his influence.
“Nothing like this has ever happened in our Country before,” he said, pointing to high-profile prosecutors, including Georgia’s Fani Willis and New York Attorney General Letitia James, as key figures in what he called a “political hijacking.”
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Trump also accused Willis of colluding with Nathan Wade, whom he described as “her lover” and lacking the experience to handle such cases.
He claimed Wade was paid “millions,” allegedly enabling lavish trips and cruises.
Letitia James, who is pursuing a civil fraud case against Trump, was also criticised.
He claimed she had campaigned on a promise to “get Trump” in her bid for office, an action he labelled “unethical” and “probably illegal.”
Trump also mentioned Manhattan District Attorney Alvin Bragg, alleging that Bragg initially resisted prosecuting him but was pressured into action by the Justice Department and the Democratic Party.
Describing the series of legal actions as a “low point in the history of our Country,” Trump maintained his resolve, declaring: “I persevered, against all odds, and WON.”
Over $100m wasted, Trump mocks Democrats for targeting him
International
US-based Nigerians get 30-year sentence over $3.5m romance scam
US-based Nigerians get 30-year sentence over $3.5m romance scam
A United States federal jury sentenced two Nigerians, Anthony Ibekie and Samuel Aniukwu, to 30 years in prison for scamming certain US citizens $3,500,000.
This was mentioned in a news statement made public on the US Department of Justice website on Monday.
According to the statement, the Nigerians, Ibekie and Aniukwu mislead their victims by informing them that they had received big inheritances that required payment to claim.
The couple would then ask their victims to transfer money, promising to refund them after the inheritances were claimed.
It also stated that the duo carried out romance scams by establishing romantic relationships with their victims and demanding them to send money after they had built trust in their victims.
It read, “An undercover law enforcement investigation has resulted in federal prison sentences for two Nigerian nationals residing in the Chicago suburbs who conducted online inheritance scams and other fraud schemes.
“Using aliases, Anthony Emeka Ibekie and Samuel Aniukwu communicated with victims throughout the United States, convincing them they had received substantial inheritances and needed to send money to individuals associated with the defendants in order to claim it.
“In addition to the inheritance scam, the pair carried out an online romance scam that involved communicating with victims via social media and dating websites, building trust with the victims through a purported online romance, and convincing them to send money to a predetermined recipient. Aniukwu and Ibekie also orchestrated a ‘business email compromise’ scam that targeted corporate email accounts.
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“The fraud schemes were uncovered by a covert law enforcement investigation. The scams resulted in losses to victims of at least $3.5 million.”
According to the statement, after being arraigned on 14 charges, the duo pleaded guilty to their different alterations.
Following their guilty pleas, Ibekie was sentenced to 20 years in prison on Thursday, and Aniukwu was sentenced to 10 years in prison on November 8.
The statement continued, “A federal jury earlier this year convicted Ibekie, 59, of Oswego, Illinois, on all 14 counts of wire fraud, mail fraud, money laundering, making false statements to a bank, and passport fraud. U.S. District Judge Steven C. Seeger on Thursday sentenced Ibekie to 20 years in federal prison.
“Aniukwu, 50, of Romeoville, Illinois, pleaded guilty last year to wire fraud and money laundering charges. Judge Seeger on Nov. 8, 2024, sentenced Aniukwu to 10 years in prison.”
Meanwhile, Jennifer Gosha, an accomplice of the Nigerians and a US citizen, is expected to be sentenced on December 18 after pleading guilty.
“A third defendant, Jennifer Gosha, 52, a U.S. citizen from Oak Park, Ill., pleaded guilty earlier this year to charges of wire fraud and making false statements to a federal agent. Gosha is scheduled to be sentenced by Judge Seeger on December 18, 2024,” the statement concluded.
US-based Nigerians get 30-year sentence over $3.5m romance scam
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