FT News Briefing EY: Breaking up is hard to do
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Apr 12, 2023 EY's failed attempt to break up its audit and consulting arms sparks debate on industry standards and conflict of interest. Meanwhile, the IMF warns of a potential global economic hard landing if inflation persists. The podcast also highlights the daunting €800 billion cost for the European aviation industry to meet net-zero goals, along with the challenges of implementing sustainable aviation fuels. Additionally, it contrasts China's post-COVID recovery with the UK's economic struggles, painting a complex picture of global financial dynamics.
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Global Economic Risks
- The IMF warns of global economic risks if inflation persists.
- High inflation may force central banks to keep interest rates high, increasing financial turmoil.
China's Economic Rebound
- The IMF predicts China's economy will hold up well due to a rebound from zero-COVID policies.
- This rebound is fueled by significant growth in domestic services, exceeding the government's 5% growth target.
UK Economic Outlook
- The UK's economy faces a difficult period, predicted to contract by 0.3% in 2023.
- This is largely due to the aftermath of the mini-budget, but the IMF expects improvement in the medium term.