IMF warns Russia-Ukraine war will have ‘severe economic consequences’ for Europe – as it happened

• Pound drops 1.1% to 18-month low after sharp retail sales drop
• UK confidence lower than even in 2008 financial crisis
• UK company insolvencies jump to five-year high
• Eurozone growth picks up in April, prices rise at record rate
• EU urges people to drive less to reduce reliance on Russia
• Closing summary

Eurozone growth picked up in April, as a rebounding service sector, benefiting from relaxed Covid restrictions, made up for a near-stagnation of manufacturing output.

Hiring also picked up and business expectations for the year ahead lifted from March's 17-month low, according to the latest flash surveys from S&P Global. However, confidence remained subdued as concerns over the Ukraine war, rising prices and the lingering effects of the pandemic continued to dampen optimism, especially in manufacturing.