by Richard Partington Economics correspondent on (#3RWGN)
Growth rate expected to slow amid uncertainty over single market and customs unionBritain’s leading employers’ organisation, the Confederation of British Industry, has warned the UK economy will shift down a gear this year and risks remaining in the slow lane because of Brexit.Cutting its growth forecasts for the year, owing to heavy snowfall in the opening months of 2018 and lingering fears over Brexit, the CBI said it expected the growth rate for the British economy to slow to 1.4%, from 1.8% last year. Continue reading...
by Hosted by Katharine Murphy with Greg Jericho and S on (#3RWGP)
With nearly a third of super accounts inactive and still being charged fees, are Australians losing money that could be going towards their retirement? The Productivity Commission has recommended a fix, but is there the political and commercial will to make these changes? Katharine Murphy speaks to Greg Jericho, of Grogonomics, and Shane Wright, the economic editor at the West Australian, about the latest growth figures and the proposed changes to make super fairer. Continue reading...
French president warned G7 members to resist a potential US drift toward ‘crude hegemony’ following Trump’s tariffs on alliesEmmanuel Macron has called on other members of the G7 to stand up to Donald Trump’s trade policies in the face of what he described as the threat of a new US “hegemonyâ€.The French president was speaking alongside the Canadian prime minister, Justin Trudeau, who is hosting the G7 summit in Quebec amid sharp disagreements between the US president and the six other leaders of industrialized liberal democracies over trade, climate change and the nuclear deal with Iran.Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things...but he doesn’t bring up the fact that they charge us up to 300% on dairy — hurting our Farmers, killing our Agriculture!Related: Trump to Trudeau in testy tariff call: 'Didn't you guys burn down the White House?'Related: The G7 minus one: Trump packs wrecking ball for Canada summit Continue reading...
Salary uplift of some degrees in UK exceeds that gained from private education, says studyStudents studying economics and medicine at British universities are likely to gain the largest financial benefits from their degrees, outstripping even the considerable advantages enjoyed by private school students or people from the wealthiest backgrounds, a study has found.
Economy may emerge from ‘soft patch’ as wage pressures rise, says deputy governorThe chances of an August rise in interest rates have increased after one of the most cautious policy setters at the Bank of England signalled support for higher borrowing costs.Sir Dave Ramsden, one of Threadneedle Street’s deputy governors, said the economy seemed to be coming out of its early 2018 soft patch at a time when wage pressures were mounting. Continue reading...
Government data shows scale of freelance or temporary economy as American workers try to navigate changing work environmentHow big is the “gig economy� On Thursday, the Bureau of Labor Statistics gave the first official reading of how many Americans rely on temporary work, freelancing, and on-demand apps to make ends meet. And the answer is: a lot.Related: Unions are too vital to democracy to be allowed to gentrify and die | Kenan Malik Continue reading...
Motorbikes, jeans and bourbon to be hit in response to US duties on steel and aluminiumThe EU will impose tariffs on US imports ranging from Harley-Davidson motorbikes to jeans from next month in retaliation over Donald Trump’s decision to put duties on European aluminium and steel.Despite the apparent reluctance of the UK’s international trade secretary, Liam Fox, to publicly back the EU’s proposed “tit for tat†measures, the European commission said it had the full support of all 28 member states to act.Related: Europe wants to take the heat out of Trump’s steel war. That might be risky Continue reading...
Estimating risk of rising economic nationalism, the kind promoted by Donald Trump, the bank warned of ‘severe consequences’ for trade and growthA worldwide escalation of the trade tensions between the US and its major trading partners would have consequences for global trade equivalent to the 2008 financial crisis, the World Bank has warned.Using conservative estimates to assess the risks to the world economy from rising economic nationalism of the kind promoted by Donald Trump, the Washington-based organisation warned of “severe consequences†for world trade and economic growth, with the harshest impact reserved for developing nations.
PM will have to either raise taxes, slash public spending or break her own spending rulesTheresa May’s plans to mark the 70th anniversary of the founding of the NHS with a big cash boost will force the government to raise taxes, break its own budget rules or slash public spending elsewhere, according to the UK’s leading thinktank on the public finances.Amid growing Westminster speculation that an NHS announcement would be made within the next month, the Institute for Fiscal Studies said the size of the health service meant that any meaningful increase in funding would create problems for Philip Hammond.Related: Long waits, cuts and rationing: happy 70th birthday NHS | Zara Aziz Continue reading...
Former PM says ministers should be focusing on issues that produced the Brexit voteThe former prime minister Gordon Brown has called for tougher migration controls as part of a package of measures designed to address the concerns of Brexit voters and to prevent the UK being permanently paralysed by its decision to leave the European Union.Speaking in London, Brown said the referendum result was a revolt against the political, business and cultural establishment and it was a mistake to dismiss the 52%-48% result as false consciousness. Continue reading...
Economic adviser says Trump is ‘seriously contemplating kind of a shift in Nafta negotiations’ amid escalating tensionsDonald Trump may seek separate talks with Canada and Mexico in an effort to get individual trade deals with the two countries, the White House economic adviser, Larry Kudlow, said on Tuesday.“He is very seriously contemplating kind of a shift in the Nafta negotiations. His preference now, and he asked me to convey this, is to actually negotiate with Mexico and Canada separately,†Kudlow said in an interview with Fox News.
Businesses bounce back after bad weather but expert says sector is ‘losing its lifeblood’The British economy is showing signs of having come through the worst of its recent slowdown triggered by bad weather, after the dominant services sector expanded more quickly than expected.Despite the better news from the latest business survey by IHS Markit and the Chartered Institute of Procurement and Supply (Cips), the key barometer for the largest sector in the economy revealed mounting fears over Brexit. Continue reading...
He influenced not only Jeremy Corbyn and John McDonnell’s social economics but also Edward Goldsmith, the founder of the Ecology party, writes David RushtonYour editorial (28 May) on Corbyn and McDonnell’s social economics highlighted the debt we owe to Karl Polanyi’s ideas and writings. Keith Flett and others (Letters, 1 June) picked up on Polanyi’s important influence on EP Thompson and others. However, they did not mention Polanyi’s formative influence on Edward Goldsmith (Obituary, 29 August 2009), ecological campaigner and founder of what became the Ecology party, now the Green party. Polanyi and his wife fled Nazi-occupied Austria to live and work (lecturing for the WEA) in Kent. Local historian Joy Saynor records in her book (Shoreham at War, 2006) that during the war Polanyi lived in Holly Place, Shoreham, before emigrating to Canada in 1944, and publishing his great work there (The Great Transformation, 1944).
by Fiona Harvey Environment correspondent on (#3RKC3)
Advances in clean energy expected to cause a sudden drop in demand for fossil fuels, leaving companies with trillions in stranded assetsPlunging prices for renewable energy and rapidly increasing investment in low-carbon technologies could leave fossil fuel companies with trillions in stranded assets and spark a global financial crisis, a new study has found.A sudden drop in demand for fossil fuels before 2035 is likely, according to the study, given the current global investments and economic advantages in a low-carbon transition.Related: What is the carbon bubble and what will happen if it bursts? Continue reading...
Builders get back to work after bad weather earlier this year, but new orders continue slideHigh street store closures are adding to the mounting problems facing Britain’s construction industry, despite a modest uplift from good weather over the past month.While the industry continued to stage a modest recovery in May after bad weather earlier this year, reduced demand from struggling retailers was one reason cited by the latest IHS Markit/CIPS purchasing managers survey for the fourth decline in new orders in five months. Continue reading...
Creativity and local government help could recreate jobs and community spirit, putting an end to mourning a corpseThe high street is dead. We need to stop trying to revive its bloated corpse and start thinking about how to replace the jobs and the community spaces it provides.Mothercare, Homebase, House of Fraser – these are just the latest big names being whacked by our ever-increasing desire to shop online. That’s unlikely to change – more Woolworths, HMVs and C&As (remember them!) will fall by the wayside in the coming decade. We can rail about the unfairness of it all – and nobody apart from Jeff Bezos would complain should Amazon be hit with a hefty tax bill to equal out their competitive advantage – but the convenience of buying a jumper while sat on the sofa in your pants isn’t going to be beaten by a more pleasant in-store “customer journeyâ€.Related: Britain’s high streets can thrive again – if we look past shops | Andrew CarterLet’s encourage 'experience' businesses to open up in empty shops – rather than encouraging them to shut downRelated: Six reasons why Britain’s retailers can’t make ends meet Continue reading...
Every region has been hit, says GMB – with London, Scotland and north-west worst affectedBritain’s manufacturing sector has shrunk in the past decade by almost 600,000 jobs to leave fewer than 3 million workers employed in the sector.A study by the GMB union found that every region in the UK has suffered a decline in manufacturing employment over 10 years, with London, Scotland and the north-west the worst affected.Related: UK manufacturing shows signs of a slowdown Continue reading...
by Haroon Siddique and Lorenzo Tondo in Palermo on (#3RHK0)
Strong showing of far-right parties partly due to Europe’s ‘flawed’ migration policiesThe billionaire philanthropist and financier George Soros has called for the EU to compensate Italy for migrants landing there, as the country’s hardline new interior minister made his first official trip a provocative one, to one of their main arrival points.Matteo Salvini, the far-right leader of the League, travelled to the port of Pozzallo in Sicily on Sunday, with a blunt warning that migrants “should get ready to pack their bagsâ€.
Confidence-boosting decision is taken as country prepares to exit third bailout programmeGreece is to take a substantial step towards easing capital controls – restrictions associated with the worst days of economic crisis – as it prepares to exit its current bailout programme.Signalling that confidence is gradually returning to the country’s banking system, the leftist-led government has doubled the amount depositors will be able to withdraw from their accounts as of Monday.Related: Italy's eurozone crisis: no easy fixes for the European Central Bank | Nils Pratley Continue reading...
The president’s bizarre solutions to the US trade deficit threaten to send his country into recessionFirst it was Europe, Canada and Mexico. Now Donald Trump’s focus has switched to the real target for his trade war: China. Wilbur Ross, the US commerce secretary, is in Beijing for talks aimed at reducing America’s $30bn-a month-deficit. Exports of Chinese high-tech manufactured goods are top of Ross’s list.Make no mistake: Trump’s strategy is a sign of weakness not strength. Countries that resort to protectionism normally do so for one of two reasons: to assist the development process when they are on the way up and to slow the pace of decline when they are in relative decline. Continue reading...
About 3,000 demonstrate near PM’s office in Amman as others march in cities across countryProtests have taken place in cities across Jordan against IMF-backed austerity measures including a new income-tax draft law and price-hikes, hours after the government and unions failed to reach an agreement to end the standoff.
The EU exports a lot to America, and fears US tariffs. But playing for time may just encourage the president to press onDonald Trump’s decision to slap tariffs on imported steel and aluminium presents the rest of the world with a stark choice: fight fire with fire or play for time.Despite all the bellicose rhetoric that accompanied the well-signalled protectionist action from Washington, the latter course is the preferred option for now. Brussels and Beijing have already made it clear that they will respond to Trump’s tariffs but are eager to avoid a full-scale trade war. Continue reading...
The addiction to economic pain is shared by Brussels and by Tories who see in Brexit a renewed ‘Thatcher revolution’George Soros is right: Europe faces an existential crisis, not least because of an addiction to austerity that has certainly contributed to Italy’s summer of discontent. This makes it all the more urgent that the time-and resource-consuming wastefulness of Brexit be brought to an end, and the sooner the better. There are huge problems facing Europe: in addition to the domestic damage the prospect of Brexit is causing, it constitutes a huge distraction from the reforms the EU requires.It is no use waiting several years. The damage to our economy is manifest already, and the Treasury, Bank of England and Organisation for Economic Co-operation and Development are not employing empty threats in concluding that things are set to go from bad to worse, as the investment so vital for productivity is postponed and the public and private sectors suffer recruitment problems.There is a train crash coming, probably in Northern Ireland, which to my mind poses an insoluble dilemma for Theresa May Continue reading...
The US agriculture industry, often the first to feel the hit of trade disputes, is bracing itself as nations threaten to retaliateAmerica’s farmers are about to start harvesting the wheat crop. Close to 60m tonnes are gathered annually and almost half is usually exported. Where this crop will be sold, though, remains an open question.As Donald Trump’s trade war escalates, a lot of farmers are worried. Trump was elected, in part, on a promise to put America’s interests first and crack down on what he characterises as a world trade system rigged against the US. But until recently the president has acted like many of his predecessors – talking tough on the campaign trail but backtracking in the White House.Related: Tariffs reveal Canada's maple syrup now comes from ... the USIt is just increasing tensions. Uncertainty is a huge factorRelated: Martin Rowson on Donald Trump, trade wars and steel tariffs – cartoon Continue reading...
As the Five Star Movement and the League step in, economists fear that a false step could send the deficit spirallingItaly’s new government has a loose collection of contradictory policies that, if implemented, will quickly unravel.That is the view of the senior economist who, until Friday, was on track to become Italy’s finance minister in the government of experts commissioned by the country’s president. Continue reading...
Trump’s new tariffs highlighted a shift many Canadians didn’t realize: an increasing amount of American syrup is sold in CanadaWhen Justin Trudeau’s government launched retaliatory tariffs against the US this week, Canadians were not surprised to see one totemic product had been caught up in the brewing trade war.Maple syrup, produced in bulk and exported around the world, is seen as integral to the country’s identity.Related: Maple syrup heist: Quebec producers bounce back from sticky situationRelated: Canadians and Americans are family. Donald Trump is testing even that | Bruce Heyman Continue reading...
by Jessica Elgot Political correspondent on (#3REHV)
UK prime minister intervenes after US announced tariffs on EU, Canada and MexicoTheresa May has hit back at Donald Trump’s “unjustified†decision to impose tariffs on steel and aluminium producers, which has pushed the EU to the brink of a trade war with the US.In her first direct intervention, more than 24 hours after the US announced the tariffs would be imposed on the EU, Canada and Mexico, May said the US should immediately rethink its decision, warning it would have ramifications for US defence projects.Related: US on brink of trade war with EU, Canada and Mexico as tit-for-tat tariffs begin Continue reading...
PMI shows weakest increase in new orders since June 2017 and largest rise in unsold stockOutput in Britain’s manufacturing sector nudged up in May but the growth acceleration is masking “underlying weaknesses†that could persist.
It must choose whether to stay shackled by the euro or try to reclaim economic sovereigntyThe possibility of a populist, Eurosceptic government coming to power in Italy has focused investors’ minds like few other events this year. The yield differential, or spread, between Italian and German bonds has widened sharply, indicating that investors view Italy as a riskier bet. And Italian equity prices have fallen – particularly in domestic bank shares, the best proxy of country risk – while insurance premiums against a sovereign default have increased. There are even fears that Italy could trigger another global financial crisis, especially if a fresh election becomes a de facto referendum on the euro.Even before Italy’s March election, in which the populist Five Star Movement (M5S) and the right-wing League party captured a combined parliamentary majority, we warned that the market was being too complacent toward the country. Italy finds itself in more than just a one-off political crisis. It must confront its core national dilemma: whether to remain shackled by the euro or try to reclaim economic, political, and institutional sovereignty.Related: If Brussels doesn’t budge, calamity beckons for Italy – and the EU | Owen Jones Continue reading...
Investors await developments after US imposes steel and aluminium tariffs, while US non-farm payrolls soar; Spain ousts prime minister Rajoy2.54pm BSTInvestors pretty much knew that the US was about to slap steel and aluminium tariffs on the EU, Mexico and Canada, so in true market fashion, it was sell on the rumour and buy on the fact.The EU however said it was pressing ahead with a complaint to the World Trade Organisation about the US move, and had also opened a challenge against China over intellectual property.2.54pm BSTKudlow "I don't think he gave anything away"Question needs to be asked then - would he have tweeted anything if it was a bad report. Think we all know the answer to that question. https://t.co/LZf5u0CQ892.50pm BSTUS factories grew strongly again last month, but slightly more slowly than expected.The final Markit manufacturing PMI came in at 56.4 compared to the intial estimate of 56.6 and April’s figure of 56.5.US Manufacturing PMI (May F) 56.4 versus 56.6 flash/expected
Nationwide data shows 0.2% month-on-month decline as buyer slump continuesHouse prices fell in May as a faltering economy, pressure on household budgets and the prospect of interest rate rises dogged the market.
We have come a long way since the Brexit referendum. With Italy in crisis, the EU needs to take a risk on real reformGeorge Soros is not exactly an insurgent leader from central casting, but you certainly can’t fault the billionaire philanthropist for his frankness. “The EU is in an existential crisis,†Soros said in a speech in Paris this week, before adding: “Everything that could go wrong has gone wrong.â€With Italy compounding Europe’s woes in the wake of the Brexit vote and the rise of rightwing populism more generally, it takes nerve to choose this of all moments to launch a fightback for Europe. Yet this is precisely what Soros proposes. There’s an audacity about his approach that echoes the French general Ferdinand Foch’s message to his commander-in-chief: “My centre is giving way, my right is retreating, situation excellent, I am attacking.â€Related: Italy can't blame Brussels for its descent into the abyss | Phillip Inman Continue reading...
With half of Europe’s unemployed at risk of poverty, the eurozone must be modernised to allow for economies to be reflated effectivelyGeorge Soros has made a fortune by exploiting mistakes – even when they are his own. In four decades as a hedge fund manager he averaged a profit of nearly $1bn a year. His success, he said, was that he did not consider errors a source of shame but of pride. “Once we realise that imperfect understanding is the human condition,†he remarked, “there is no shame in being wrong, only in failing to correct our mistakes.†It is in that spirit that Mr Soros suggested to an audience in Paris that there was a way out of the current European crisis, but only if the European Union confronted its miscalculations and blunders. Advice from the uber-wealthy is a mixed blessing for the remain cause. To Mr Soros’s credit he left his business to back with cash the kind of “open societies†he favours, embodied by the EU’s voluntary association of equal states. It has been no quiet retirement: his foundation was chased out of Hungary pursued by antisemitic slurs accusing him of being a malevolent outside meddler.However, the billionaire philanthropist’s analysis is both perspicacious and acute. Mr Soros argues that monetary union radically changed the dynamics of the EU, and the impact of the financial crash brought out into the open hitherto latent governance tensions. The solidarity of nations has been repeatedly tested, and often found wanting. He was right to add that the EU’s self-inflicted “addiction to austerity†has been exploited by populist politicians to build Eurosceptic support. They were also quick to exploit fears after the refugee crisis in 2015, when their warnings of terror threats and a breakdown in local public services seemed plausible to many. Migration also illustrates the absurdity of Britain’s Brexit obsession to Europeans: while the rest of the continent was fixated on mass migration of refugees from outside, Britain was gripped with the idea of controlling free movement within it by EU citizens. Continue reading...
Wall Street and Asia fall sharply as investors fear new elections could bring further uncertainty to Italy2.49pm BSTAfter Tuesday’s sharp falls in the wake of the Italian political crisis, most European markets tried their best to regain some of the lost ground.Italy’s FTSE MIB is currently up 1.7%, Germany’s Dax is 0.7% higher, Spain’s Ibex has added 0.4% and the FTSE 100 is up 0.14%. But France’s Cac remains in negative territory, down 0.27%. On Wall Street, the Dow Jones Industrial Average is up 170 points or 0.7%.2.36pm BSTThe European recovery may in some cases be a little tentative, but the Wall Street rally looks a little more substantial.The Dow Jones Industrial Average is up 160 points or 0.66% in early trading, while the S&P 500 has opened up 0.47% and the Nasdaq Composite is 0.43% higher.1.41pm BSTAnother piece of US data to keep away from the president.US GDP grew by less than initially thought in the first quarter. On an annualised basis the economy grew by 2.2%, down from the first estimate of 2.3% and much lower than the fourth quarter’s growth rate of 2.9%.1.27pm BSTDon’t tell Donald Trump, but the latest US private payroll figures have fallen short of forecasts.Ahead of Friday’s non-farm payrolls, the ADP employment report shows an increase of 178,000 private sector jobs in May, compared to expectations of a 190,000 rise.1.22pm BSTThe surge in German inflation complicates the European Central Bank’s life even further, says ING Bank economist Carsten Brzeski:While the Easter Bunny Effect has finally been left behind, German inflation is still heavily affected by seasonal effects. The sharp surge in oil prices in combination with several public holidays and long weekends pushed up energy prices, leisure costs and food prices. Under the surface of (too) many one-off factors, German inflation data still tells a two-sided story: while prices for consumer goods have gradually accelerated in recent months, inflation on services has slowed down and has even been negative for a couple of months for communication and clothing. Where available, core inflation measures at the state levels actually dropped in May.Despite today’s increase in headline inflation, the underlying trend still points to a rather benign picture for inflationary pressure. For the ECB, however, today’s inflation data from Germany gives a foretaste of the increased complications on the road to taper. The still undecided debate on whether the Eurozone economy is in a soft patch or at the start of a protracted downswing, the surge in oil prices and latest political developments in Italy have clearly complicated the ECB’s life. It increasingly looks as if the big question for the ECB is not when to stop QE but rather when to signal an extension of QE. With latest market turmoil and political tensions in Italy, giving some certainty in times of uncertainty could be the ECB’s preferred policy choice. This would be an announcement or at least a very clear hint at QE extension at the June meeting.1.19pm BSTThe cost of buying goods and services in Germany has soared above the European Central Banks target of 2%, according to official figures.Consumer price inflation jumped from 1.4% year on year in April to 2.2% in May, the fastest pace since February 2017 and well above forecasts of a 1.8% rise. The month on month increase was 0.6%, compared to expectations of a figure of 0.3%.1.06pm BSTHere’s our latest report on the day’s political developments in Italy:The head of Italy’s anti-establishment Five Star Movement has rekindled negotiations to form a government, days after a bitter row over the country’s future in the eurozone ended a fledgling deal for populist parties to take power.Luigi Di Maio, the 31-year-old head of the M5S, Italy’s largest party, indicated on Wednesday he was prepared to compromise on his controversial choice of a eurosceptic economist, Paolo Savona, for finance minister. But he insisted that his pick for prime minister remained political newcomer Giuseppe Conte.Related: Head of Italy's M5S rekindles negotiations to form a government12.54pm BSTDespite many markets edging higher, they are nowhere near recovering the Italy-driven losses, and investors have very little appetite for risk at the moment. Craig Erlam, senior market analyst at Oanda, said:It looked as though we were headed for fresh elections as early as July, with negotiations between Five Star Movement and Lega having failed after President Sergio Mattarella vetoed their choice of Finance Minister. Carlo Cottarelli – a former IMF economist - was tasked with forming a temporary government until further elections are called, ideally next year, but that appears to have failed before it got started.While early elections will arguably be very beneficial to the populist parties, who will cite the rejection of its choice of Finance Minister as evidence of Brussels interference and an abuse of the democratic will of the people, it seems one last attempt to form a government is being discussed. The parties seem unwilling to hold an election in July and have no desire to wait until next year.11.57am BSTStock markets keep a mixed feel towards midday: FTSE mildly higher (#GBP just mildly higher helps explain why) #STOXX +0.07%, #DAX +0.5%, France's CAC40 dn 0.2%, #Italy's FTSEMIB +1.5% - biggest index riser - Swiss #SMI dn 0.3%, US stock index futures each up 0.5% 1/ ^KO11.56am BSTOver in Spain, prime minister Rajoy is resisting the idea of stepping down as he prepares to face Friday’s no confidence vote:Spanish Prime Minister Mariano Rajoy rules out quitting ahead of a no-confidence vote in parliament over graft convictions against members of his Popular Party
As much as some want to believe it, the EU has little to do with the country’s failure to put its house in orderAs Italians wrestle with their constitution and possibly head towards another general election, are they victims of a financial swindle perpetrated by the Germans? To read some of the commentary, and hear voices from the streets of Rome and Naples, you would think that they were.The people of Athens accused the Germans and, to a lesser extent, the French, who between them are the main props of the single currency, of being the architects of their impoverishment. It seems many Italians have followed suit.Related: Italy at risk of new financial crisis in wake of coalition's collapseThe mafia, mass early retirement, tax evasion and a low birthrate. These are problems created in ItalyRelated: Italy is facing regime change. The future will be repressive | Antonella Rampino Continue reading...
The corruption and poverty that encourage Romanians to migrate leave the country depleted of energy and hopeRomanians are now the second largest group of non-British nationals in the UK, following Poles. More than 400,000 Romanians live in the UK, more than double the number before 2014, when restrictions on the UK labour market lifted (seven years after Romania joined the European Union).Nevertheless, in spite of these numbers, Romanians are not out to “flood†the UK. They are leaving their county in hordes, moving to wherever there is an opportunity. In Italy and Spain (Latin countries with similar languages), Romanians have been the largest group of non-nationals for a while.Related: Romanian is second most common non-British nationality in UKRelated: Romania braced for huge protests over 'big step backwards' on rule of law Continue reading...
Unemployment is set to fall to 40-year low, but economy remains weak, says thinktankUnemployment will drop to its lowest level since 1980 across the world’s richest nations, but global growth remains dependent on cheap borrowing and government spending, the Organisation for Economic Cooperation & Development (OECD) has warned in its latest global economy health check.The rise of tit-for-tat protectionist trade barriers, the return of volatile financial markets, and soaring oil prices also spell trouble for the global economy as it heads towards the 10-year anniversary of the 2008 banking collapse, the OECD said. Continue reading...
The single currency hits a 10-month low as concern about US tariffs on China adds fuel to selloff in stock marketsShares in Asia fell sharply and the euro sank to a 10-month low against the US dollar as concern about the political turmoil in Italy spread through international financial markets on Wednesday.Renewed fears of a trade war between the United States and China also contributed to the negative mood after Donald Trump announced $50bn worth of tariffs on Chinese goods just days after his treasury secretary said the trade war was “on holdâ€.Related: Italy at risk of new financial crisis in wake of coalition's collapse Continue reading...
When even Marks & Spencer is in trouble, it’s time to reimagine city centres as places where people live, learn and relaxIt seems there’s barely a brand that’s immune from the malaise hanging over the British high street. Marks & Spencer and House of Fraser now look to be in serious trouble. Take a walk through the heart of many towns and cities up and down the country, and you’ll encounter a bleak vista: the all-too-familiar array of pound shops, bookies and boarded-up vacant lots. And things aren’t likely to pick up anytime soon, with the high street recently seeing the biggest year-on-year drop in footfall for nearly a decade.Related: Shoppers desert UK high streets, putting more jobs at risk Continue reading...
A crisis in council funding is forcing domiciliary care firms to cancel contracts, leaving older people without vital supportAlmost 1.2 million people aged over 65 do not receive the support they need with essential daily tasks such as getting washed and dressed or preparing meals, according to Age UK. The perilous state of the domiciliary care sector, which provides support in people’s own homes, is one of the main reasons for this, the charity says.Related: NHS needs £2,000 in tax from every household to stay afloat – reportWe can secure the NHS and social care for the future by asking everyone to contribute a little moreRelated: Stop scrimping, Theresa May – or the NHS’s 70th birthday will be its last | Polly Toynbee Continue reading...
by Stephanie Kirchgaessner in Rome, Daniel Boffey in on (#3R6NN)
Shares in New York and Asia fall sharply as investors and EU politicians take fright at strengthening mood against euroItaly risks careening into a new financial crisis after the Bank of Italy said the country’s leaders could not “disregard†financial constraints and its commitments to Brussels.Markets around the world were also shaken with the Dow Jones industrial average in New York falling almost 400 points, or 1.58% on Tuesday as investors shifted money into the safe haven of US bonds, putting pressure on bank shares.Related: Markets rattled by Italian and Spanish political turmoil - business live Continue reading...
US to levy duty on $50bn of Chinese goods, claiming misuse of its intellectual propertyThe US government has threatened to impose tariffs on $50bn of imports from China unless Beijing addresses the issue of the theft of American intellectual property, once again raising the prospect of a trade war.The renewed threat of tariffs comes ahead of commerce secretary Wilbur Ross’s visit to Beijing this week when he will try to get China’s agreement to firm numbers for additional US exports to the country. The US had wanted China’s trade surplus with America to shrink by $200bn in two years, a figure seen as fanciful by most economists and trade experts.Related: Trump says China trade deal is 'too hard to get done' Continue reading...
Retailer signs new lease as north London shopping centre plans to double in sizeJohn Lewis will rejuvenate its 40-year-old department store in London’s Brent Cross as part of a £1.4bn redevelopment of the shopping centre. Brent Cross, which opened in north London in 1976, will double in size to include 150 new shops, 50 new restaurants and other leisure businesses including a luxury cinema.John Lewis has signed a new lease as part of the development, which comes despite difficulties on the high street leading to the closure of hundreds of stores as shoppers shift to buying online. A net 1,700 chain stores closed their doors in the top 500 towns and shopping centres last year, according the Local Data Company – the worst figures since 2010. Continue reading...