An already-murky outlook for U.S. stocks and bonds is growing darker, as sizzling inflation ratchets up expectations for how aggressively the Federal Reserve will need to raise rates.

Sterling's slide against the dollar to a rate last seen in 1985 has sparked talk of a dramatic spiral downwards that ends in a collapse in confidence in British assets and a balance of payments crisis.

British construction companies suffered a second straight month of contraction in the face of deep uncertainty about the outlook for the inflation-hit economy, a survey showed on Tuesday.

Laxman Narasimhan may have no experience of running coffee shops, but the outgoing CEO of British packaged goods group Reckitt will bring insight into the changing habits of consumers when he takes over at Starbucks.

Just as inflation ravages the big guns of U.S. apparel retail, awash in high inventory and deep discounts to lure shoppers back to stores, Japan's Uniqlo is set for its best year ever in North America after a COVID-imposed revolution in its business model.

Consumer morale in the euro zone's two biggest economies diverged starkly in August as French consumers benefited from fresh government measures while concerns over rising energy bills hit their German counterparts, surveys showed on Friday.

British retail sales surprisingly rose overall in July but consumer confidence is at a record-low level as the UK heads towards recession under a new leader.

Britain's slide towards a recession has gathered momentum after data this week showed inflation jumping above 10%, wages lagging far behind price growth and consumer confidence sinking to a record low.

British households are feeling "a sense of exasperation" about the surging cost of living which has pushed consumer sentiment to its lowest since at least 1974, according to the country's longest-running survey of household finances.

China's central bank is set to take more easing steps, pressured by a shaky economy that is undercutting jobs, but it faces limited room to manoeuvre due to worries over rising inflation and capital flight, policy insiders and analysts said.

China's central bank cut its interest rates on Monday for the second time this year, but analysts suspect it will do little to spur lending in an economy awash with cash but lacking in consumer demand and business confidence.

British businesses do not expect any growth over the next three months, as a surging cost of living squeezes consumer demand, a monthly survey showed on Sunday.

British markets braced for more political uncertainty on Wednesday, with investors keen to see if the new finance minister loosens the purse strings and wondering whether Prime Minister Boris Johnson will survive an exodus of support.

British consumers cut back on shopping in May in the face of fast-rising inflation, and a measure of their confidence sank to a record low this month, according to data that underscored the scale of the cost-of-living squeeze.

Global airlines battered by COVID-19 seem confident of narrowing their losses and went on the offensive at an industry summit in Qatar, criticising governments and airports over their handling of the recovery from the pandemic.

The trillion-dollar retail investment express is losing steam, dampening the fortunes of British trading platforms that boomed during lockdowns on the back of a meme stocks frenzy.

Toxic cocktail darkens outlook for British pound

Construction of new homes in Britain almost ground to a halt last month as builders feared the cost-of-living squeeze and rising interest rates would constrain demand, a closely watched survey showed on Wednesday.

European shares fell on Tuesday as investors worried about the squeeze to economic growth from aggressive monetary policy tightening by central banks in a bid to tame rising inflation.

British shoppers facing a surge in inflation cut their spending in May by the most since the country was in a coronavirus lockdown in early 2021, according to a survey published on Tuesday.

British manufacturing activity expanded in May at the weakest rate since January 2021, as producers of consumer goods struggled against a worsening cost-of-living crunch, a survey showed on Wednesday.

Retail sales in April shrank 11.1% year-on-year, after falling 3.5% in March.

Crypto markets, which trade around the clock, had a quiet weekend after turmoil last week driven by TerraUSD, a so-called stablecoin, broke its dollar peg.

In cryptocurrencies, Bitcoin was last up 5.1% at $31,277, having touched its lowest since December 2020 last week

The dollar index was at 101.08 on Monday morning, just shy of a two-year peak of 101.33 hit on Friday.

The world's biggest economic powers, the United States and China, have not been spared from the economic impact of Omicron.

Although it is doubtful, there is a possibility that Bitcoin's price would depreciate to zero.

The rapidly emerging digital banking sector has become a significant competitor to the traditional banking market.

The company reported first quarter profits of $438 million compared with $16 million in the year-ago period, following a 74 percent rise in revenues to $10.4 billion.

The stock market has shrugged off the political chaos, closing higher for the past two days, focusing on hopes the coronavirus vaccine rollout will bring an economic recovery.