Consumers face a summer of shipping chaos as lockdowns in China wipe out £40bn from the FTSE 100

GGood Morning.

Markets will start the week firmly lower as fears of rising inflation, slowing economic growth and lockdowns in China weigh on sentiment.

Asian markets plummeted overnight, with Chinese stocks on track to hit their lowest levels since May 2020.

The FTSE 100 was set to follow suit, while European stocks were also lower despite relief at French President Emmanuel Macron’s election victory.

The negative sentiment comes as the Federal Reserve prepares to hike interest rates to combat sweltering inflation, while ongoing lockdowns in China sparked demand fears and dragged oil prices lower.

5 things to start the day off right

1) British Airways uses cabin crew in Madrid The British airline is set to open a base for cabin crew in Madrid as bosses scramble to avoid the latest travel chaos, which has lingered throughout the summer

2) Russian sanctions are set to cost the UK economy £6 billion over nine years An official analysis of the trade measures enacted earlier this month has revealed that the restrictions will deal a billion-pound blow to the economy over the next nine years

3) Ukraine urges Johnson to ensure ‘not a drop’ of Russian oil reaches Britain Whitehall has given British buyers until the end of the year to adjust to the Russian oil ban

4) Live music royalties fall again as the industry fails to recover from the pandemic Live performance revenue reached £54m in 2021, down 38 per cent from the £85m recorded in 2019

5) Twitter ‘more receptive’ to Elon Musk takeover plan Twitter and Mr Musk met on Sunday to discuss the deal, according to the Wall Street Journal

what happened overnight

Asian markets fell on Monday amid growing concerns of a sharp hike in US interest rates as officials struggle to rein in runaway inflation, while oil was hit by expectations Chinese demand will dry up amid Covid lockdowns . Hong Kong, Shanghai and Taipei all fell more than two percent, while Tokyo, Seoul, Singapore, Manila and Jakarta were also deep down.

Comes today

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