UK house price inflation hits highest since 2014; supply shortage bites-business live | business

Good morning, and welcome to our rolling report on the world economy, financial markets, the Eurozone and business.

As the global economy is trying to recover from the impact of the Covid-19 pandemic, global chip shortages, rising raw material costs, and supply chains are all putting pressure on the global economy.

New trade data from China indicate that these factors are now affecting growth.

China’s Exit It slowed down in May, with a year-on-year increase of 27.9%, down from 32.3% in April. This is weaker than economists expected.

This suggests that the sharp recovery from the pandemic may be slowing-due to the ongoing Covid-19 disruption, as well as increasing semiconductor problems.

import It grew by 51.1% in May, which was the fastest growth in a decade. But in the race for metals and fuels, soaring commodity prices have pushed up the value of imports, which has raised concerns about rising inflation.

Pang Hong | of ING Claiming that China’s auto industry has been hurt by semiconductor shortages:

The main reason for the shortage is that all export items related to semiconductor chips have slowed down.

The export value of automobile processed products and parts with the largest export value fell 4% year-on-year. This is likely to be the result of a shortage of semiconductor chips.

Pang also pointed out that the recent Covid-19 outbreak is also hitting trade. This may push up consumer prices in stores.

Since the end of May, there have been about 10 cases of new coronary pneumonia every day in Guangdong, which has the largest number of electronics factories.

The cargo at the Shenzhen port, which handles most of the electronic throughput, has been affected by Covid. Port workers must now conduct Covid testing and port operations have been interrupted. Some factories in Guangdong have also been affected by Covid, mainly due to workers queuing for testing.

Therefore, we expect trade and production data in June to be affected. This may push up the overall price of electronic products, and affect China’s export prices, and ultimately the import prices of the United States and Europe. Supply chains in Asia may also be disrupted.

Julian Evans-Prichard, China Senior Economist Capital economicsSaid that although import prices have risen rapidly, imports in May may decline slightly.

“Again, supply constraints are part of the reason-inbound shipments of semiconductors continue to decline.

The same goes for the import of industrial metals. “

Commodity prices fell after the data was released, and traders expect future demand may be lower than expected

Came today too

Experts are digesting the deal with the lowest global corporate tax rate of 15% agreed by the main finance minister on SaturdayG7 also agrees that countries should have the right to tax the profits of the largest and most profitable multinational companies where they originate. Landmark moment.

But because of low profit margins, Amazon can avoid suppressing “the largest and most profitable multinational companies.”

Richard Murphy, a visiting professor of accounting at the School of Management at the University of Sheffield, said that the 10% profit threshold is “inappropriate” because different companies have different business models.

He added that the current method of reporting profits in each country is “easy to be played with.”

“Unless they figure out the details, this may become a false hope.”

Mortgage lender Halifax The latest house price index is expected to confirm that house prices have risen by about 10% last year.

This Bank of England A discussion paper on a new form of digital currency is being released-the focus is on the possibility of it issuing a new central bank digital currency that works with cash and bank deposits.

The European stock markets are expected to open little change:

Agenda

• 8.30am BST: Halifax House Price Index in May
• BST 10 am: Bank of England releases discussion paper on new forms of digital currency