Euro zone finance ministers are likely to pledge on Monday that national financial shields against soaring energy costs will be temporary and targeted, so as not to trigger a wage-price spiral that would boost already record high inflation, officials said.

Calls to the Bank of England saying some British pension funds were struggling to meet margin calls began on Monday. By Wednesday they were getting more urgent and coordinated.

The pound languished near a record low on Wednesday on lingering concerns over Britain's radical tax cuts to spur growth, while the dollar edged up after Treasury yields surged overnight.

A traditional banking consolidation in Europe is unlikely right now due to a lack of progress regarding the banking union, BBVA Chairman Carlos Torres said on Tuesday.

A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis.

As central banks hike interest rates at a pace not seen in decades to control inflation, the alarm among bond investors over looming recession risks is spreading fast.

European shares fell on Thursday, with tech stocks sliding after the U.S.

France and Germany pledged on Friday to act together to protect households and companies from soaring energy prices, while also using fiscal policy to fight record high inflation.

Byzantine, politicised or just plain stupid, European Union fiscal rules have been called many names and changed many times.

The European Central Bank is expected to make a jumbo 75 basis point refinancing rate increase on Thursday, according to a slim majority of economists polled by Reuters, as it battles to contain inflation running at more than four times its target.

The euro zone is almost certainly entering a recession, with surveys on Monday showing a deepening cost of living crisis and a gloomy outlook that is keeping consumers wary of spending.

The German economy is on track to contract for three consecutive quarters starting from this one, according to a Reuters poll of economists, following a dramatic spike in gas prices after Russia slashed deliveries to Europe.

Manufacturing activity across the euro zone declined again last month as consumers feeling the pinch from a deepening cost of living crisis cut spending, a survey showed on Thursday, providing more evidence of the growing risk of recession.

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.

Another dramatic spike in natural gas prices appears to have ended any hopes that Europe's inflation battle is set to ease, with financial markets now bracing for higher prices, a faster pace of interest rate hikes and a deeper economic downturn.

The global economy is increasingly at risk of sliding into recession, surveys showed on Tuesday, as consumers faced with generation-high inflation rein in spending while central banks are tightening policy aggressively just when support is needed.

It was meant to be Europe's stellar year.

The euro briefly fell back below parity against a robust dollar on Monday and was languishing at five-week lows.

German utility Uniper reported a net loss of 12.3 billion euros ($12.5 billion) for the first half and warned it would take until 2024 before it could return to profit.

Strong earnings at Credit Agricole and Lufthansa lifted stocks on Thursday as tension over Nancy Pelosi's visit to Taiwan eased and markets bet the Bank of England will hike interest rates by the largest amount since 1995 to quell inflation.

Euro zone retail sales plunged in June and factory gate prices continued to rise, data showed on Wednesday.

The global economy is in the grips of a serious slowdown, with some key economies at high risk of recession and only sparse meaningful cooling in inflation over the next year, according to Reuters polls of economists.

The European Central Bank raised interest rates by more than expected on Thursday as concerns about runaway inflation trumped worries about growth, even while the euro zone economy is suffering from the impact of Russia's war in Ukraine.

Debt-laden Italy finds itself in markets' crosshairs again, as the prospect of a collapse in its national unity government coincides with the European Central Bank preparing to deliver its first interest rate rise in 11 years.

The European Central Bank is set to deliver its first interest-rate hike since 2011 this week, yet markets are already fast-forwarding to focus on the path for higher rates beyond Thursday as economic prospects darken.

The European Union's body for dismantling failed banks said on Wednesday it would ratchet up pressure on lenders over the coming months to bolster their defences so that none remain "too big to fail" by January 2024.

Innovative incentives for people to green up their homes revived Italy's construction sector last year, boosted its economy and drew international praise.

The European Central Bank's 'whatever it takes' commitment to bind the euro zone is wearing thin as it tries to 'normalise' monetary policy and give inflation hawks more say in how it goes about it.

The eurozone crisis was caused in the early 2010s when investor fears about the solvency of Greece, Spain, Portugal and Ireland drove their bond yields to levels where they needed ECB support.

The French finance minister Bruno Le Maire has called for the Eurozone to transform into a United States of Europe - while also warning Britain of a painful life after Brexit.