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Gazprom turns the screws

Gazprom’s announcement this week that it is reducing the supply of gas through Nord Stream 1 to only a fifth of its normal capacity has pushed European natural gas prices up once again and threatens to keep inflation higher for longer while heightening the risk of recession. Next week we expect to learn that euro-zone unemployment held steady at a record low, PMIs for Italy and Spain fell in July and euro-zone retail sales and German industrial production declined in June. Bank of England Drop-In (4th August, 10:30 ET/15:30 BST): Join our post-MPC, 20-minute online briefing to find out why we think UK rates will rise by more than most expect, despite a looming recession. Register now.    

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