Markets tumble on 'incredibly grim' outlook

Stockmarkets slumped as concern mounted over the outlook for the US financial system and the wider economy; in Britain, inflation rose again and recession looms; while banks face more misery.

We're back in "panic mode", said Marie-Pierre Peillon of Groupama Asset Management. Stockmarkets slumped this week as concern mounted over the outlook for the US financial system and the wider economy. US producer and consumer-price inflation reached 27-year and 17-year highs of of 9.2% and 5% in June. Retail sales barely grew, suggesting that the boost from tax rebates is fading and the consumption outlook is "incredibly grim", as Capital Economics put it.

From bad to worse in Britain

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