Soros warns on global recession

GEORGE SOROS, the international financier, yesterday warned that world recession was still a possibility if economic growth in Europe and the US slowed before there was a pick-up in Asia. Giving evidence to MPs on the Treasury Select Committee, Mr Soros also reiterated his concerns about world deflation. The billionaire financier said he was broadly in favour of the euro, but believed that there needed to be "political and fiscal adjustments" to ensure its success.

Mr Soros warned that sterling could be vulnerable to speculative attacks if the UK stayed out of monetary union. He cautioned the Government against announcing a target euro exchange rate for the pound. "It would give people like me a chance," he said.