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Good morning. Euro loses parity. Twitter is facing a legal peril. Germany’s aid for Ukraine. Piling utility bills in the US. Here’s what people are talking about.
Euro-area businesses spent years wishing for a weaker euro. Now it’s here and it couldn’t have come at a worse time. The currency has slid more than 12% against the dollar this year, taking it below parity for the first time in two decades. That decline is boosting import costs, compounding a damaging surge in energy prices and a record inflation spike ripping through the economy. All that is bad news for margins. German businesses warned they are still facing “strong costs pressures.” In addition, consumer inflation in the euro zone is already close to 9%, keeping a lid on demand, which will also weigh on sales and profits.