The woman from the agency at the centre of the Sports Direct scandal is up before the select committee this weekWhile Sports Direct founder Mike Ashley was undoubtedly the stand-out performer at June’s business, innovation and skills select committee hearing into the retailer’s treatment of staff, the show put on by Transline’s Jennifer Hardy is often overlooked.She is the finance chief of the temporary employment agency whose performance prompted committee chairman Iain Wright to accuse her of deliberately misleading MPs, after Hardy claimed the firm lost its gangmaster licence following an “administrative error ... not a misdemeanour”. Continue reading...

Trump issued an ultimatum after the vote was postponed on his bill to replace Obamacare, raising fears about his ability to push through other growth-boosting reforms

You may think that a smuggler in the Tunisian desert has nothing to do with your trip to the supermarket. You’re wrongAs I talk to him, Ahmed pulls his chair into his store to escape the hot Tunisian sun. He is a retired teacher – the years of screaming children can be counted in the rings framing his eyes. Behind him is his merchandise. To make up for a small pension, Ahmed is selling kitchenware in a market near the Libyan border, over four hundred tiny concrete garages surround him, goods piled high: clothes, bags, microwaves. It looks like any other market, but note an invisible detail: everything sold here is illegal. Every good in this market has been smuggled into Tunisia. Ahmed, though he may not look the part, is a smuggler.Related: Supply chain audits fail to detect abuses, says reportRelated: Living and looking for lavatories – why researching relief is so relevantRelated: The world in 2065: what do social scientists think the future holds? Continue reading...

Two former members of the Bank of England’s interest rate-setting committee discuss the outlook for this yearProfessor of economics at Dartmouth College, New Hampshire, and member of the Bank’s MPC from June 2006 to May 2009 Continue reading...

The latest monthly Guardian analysis finds signs of a slowdown as prices rise and real pay shrinks• Help fund our journalism by becoming a Guardian supporterBritish households are being warned to prepare for a tightening squeeze on living standards, as a Guardian analysis shows the Brexit vote’s blow to the pound is stoking inflation while pay packets are shrinking in real terms.As Theresa May prepares to trigger article 50 next week, kicking off the formal process of the UK leaving the EU, the economy continues to defy the doomsayers who predicted a sudden downturn after the referendum. But signs of a slowdown are now emerging as higher prices put pressure on companies and consumers alike.Related: How has the Brexit vote affected the UK economy? March verdictRelated: 'The Brexit vote is starting to have major negative consequences' – experts debate the data Continue reading...

Maryvale’s Australian Paper, the only copy paper manufacturer in the country, urges government to hold firm on tariffs to keep out subsidised importsAustralia’s only copy paper manufacturer, one of the largest remaining employers in Gippsland’s Latrobe Valley, is concerned free trade negotiations with Indonesia could frustrate moves to impose anti-dumping tariffs.The Anti-Dumping Commission filed its report on paper imports to the federal government on Friday, after a 10-month investigation.Related: Emergency intervention urged to keep open Hazelwood power plantRelated: What will fill the hole left by coal? Continue reading...

Retail sales rose by a stronger-than-expected 1.4% in February as UK consumers took Brexit and rising inflation in their stride

Business pressure to weaken bribery laws and government’s inability to focus on non-Brexit issues are also concerns, says groupBrexit could damage the UK’s efforts to tackle corruption and give multinationals leverage over the British government in bribery cases, the Organisation for Economic Co-operation and Development has warned.Business pressure to weaken bribery laws and an inability by the government to focus on non-Brexit issues are both risks associated with leaving the European Union, according to a new report by the group.Related: Pro-Brexit ministers 'relaxed about leaving EU without trade deal' Continue reading...

Recovery after slump in December and January is not enough to reverse slide in three-month trend, says ONSBritain’s retailers received a respite from a two-month losing streak when spending in high street stores and online bounced back in February.The Office for National Statistics said retail sales volumes were up by 1.4% on January and 3.7% higher than in February 2016.Related: UK retail sales surge as consumers shrug off Brexit fears - business live Continue reading...

She talks blithely of ‘taking back control’. But this Brexit prime minister is about to find out just how painful divorce always is after a 40-year marriageIt’s not the beginning of the end (of Brexit) – but it’s definitely the end of the beginning. Despite the fixation in the UK on the precise date and legal niceties of the article 50 process, the most important event of the weeks to come will not be the notification itself but the EU response to it, and the political and economic dynamics that sets into motion.If things go according to plan, we’re headed for the usual EU negotiating scenario: long interludes of tedium and small print interspersed with episodes of late-night brinkmanship ending eventually in a compromise no one likes, but which everyone will describe as a victory.Possibilities would be disruption at borders, for both travellers and businesses, as we and the rest of the EU reintroduce long-abandoned controlsRelated: A Mini part's incredible journey shows how Brexit will hit the UK car industry Continue reading...

Adding up the impact of slashed benefits and a 58% reduction in central funding, the council says it’s England’s poorest wards that are being hit again and againIn Liverpool, austerity is visible: boarded-up libraries, closed-down day centres and shut nurseries. But, as in countless cities and towns across the UK, the bleakest of its marks are hidden behind closed doors: the young mum skipping meals to pay the rent because of the benefit cap, or the cancer patient kept awake by fear he’ll be found “fit for work”.Related: Cuts that squeeze the life out of Liverpool | LettersPeople living in Liverpool District B lost £807 per household, while Hart council in Hampshire got away with £28Related: My daughter is not deemed 'disabled enough' to get free parking | Nicky Clark Continue reading...

US and UK markets fell as investors grew impatient with the president’s policies, but lower oil prices could also have a political impact

US shares fell – with a knock-on effect elsewhere – as the new administration struggles to follow through on spending and tax cuts promisesShares, oil and the US dollar were all under pressure as global financial markets took fright at the prospect that Donald Trump would fail to deliver on his growth-boosting promises.In the most nervous conditions since the immediate aftermath of the president’s shock victory in last November’s elections, stock markets in Asia and Europe fell in response to Tuesday’s sharp decline on Wall Street.Related: Asian shares drop as investors fear Trump won't deliver on promises Continue reading...

Shares fall in Europe and Asia after Wall Street suffered its worst day this year amid concerns that President Trump will not be able to deliver on policy pledges

Consumer spending likely to fall as rising inflation and weak wage growth biteUK households are the most downbeat about their finances since 2013, as families start to feel the pinch from rising inflation and weak wage growth, according to a new survey.This suggests consumer spending, until now the main driver of UK economic growth, will weaken in coming months.Related: UK wages will soon lag behind prices – will the Bank take action? | Larry Elliott Continue reading...

Bill Gates says governments could use a robot tax to fund human services – it would also help remedy income inequalityThe idea of a tax on robots was raised last May in a draft report to the European parliament prepared by MEP Mady Delvaux from the committee on legal affairs. Emphasising how robots could boost inequality, the report proposed that there might be a “need to introduce corporate reporting requirements on the extent and proportion of the contribution of robotics and AI to the economic results of a company for the purpose of taxation and social security contributions”.The public reaction to Delvaux’s proposal has been overwhelmingly negative, with the notable exception of Bill Gates, who endorsed it. But we should not dismiss the idea out of hand. In just the past year, we have seen the proliferation of devices such as Google Home and Amazon Echo Dot (Alexa), which replace some aspects of household help. Likewise, the Delphi and nuTonomy driverless taxi services in Singapore have started to replace taxi drivers. And Doordash, which uses Starship Technologies miniature self-driving vehicles, is replacing restaurant delivery people.Related: If the robots are coming for our jobs, make sure they pay their taxes | John NaughtonRelated: Robots won't just take our jobs – they'll make the rich even richer Continue reading...

Mark Carney appears unconcerned about inflation, but he will have to justify his inactivity as real incomes fallJudging by his comments, Mark Carney is blissfully unconcerned about inflation rising above its 2% target for the first time since 2013. The governor dismissed the unexpectedly sharp rise in the cost of living as a “single data point” when quizzed about it at a conference on ethics in banking held at the Bank of England. “We are talking about much bigger issues”, Carney added.There’s little doubt that voters are unhappy about the morals – or lack of them – of those working in the financial services industry. But they are also concerned about living standards. After the latest rise, the annual rate of inflation is the same as annual growth in average earnings. Next month, wages will lag behind prices and real incomes will start falling. For millions of voters, there are not many bigger issues than that.Related: Rising food and fuel prices hoist UK inflation rate to 2.3% Continue reading...

Equality Trust calls on government to force firms to report pay gap between highest-paid and average employeeThe average FTSE chief executive earns 386 times more than a worker on the national living wage, according to an analysis published by the Equality Trust as it steps up its campaign for new government rules to expose pay gaps.The charity used annual reports from 2015 for all the companies in the FTSE 100 to calculate that their CEOs pocket an average of £5.3m each year, compared with £13,662 for someone on the national living wage of £7.20 an hour. Continue reading...

As the Wall Street Journal attacks the president for ‘not respecting the truth’, traders drop risky assets in rush for safe havensConcerns about the Trump administration’s ability to push through key reforms and deliver on a promised fiscal boost turned share markets across the Asia Pacific region into a sea of red on Wednesday.

It’s not just fleeing conflict that makes victims out of refugees – it’s also denying them the means to become autonomous and productiveFrom the 1980s on, a dominant international approach has been taken towards the majority of the world’s refugees. Concentrated in a small number of host countries, close to war zones, displaced people have been settled in what have become known as “humanitarian silos”. Such places are usually remote, arid, dangerous and almost always have strict prohibitions on socio-economic activity. They are designed to deal only with the emergency phase of refugee intake, and yet the model has endured, leaving individuals and families stranded for years at a time.This strategy undermines autonomy and dignity. It also erodes human potential by focusing almost exclusively on people’s vulnerabilities, rather than on rebuilding their lives. Inevitably, many of those directly affected by it become disillusioned and choose to move on, gravitating towards urban areas in the host nation or risking their lives crossing oceans to other countries.Related: Refugee camps are not the answer to a complex crisisRelated: Innovation at Zaatari: how do refugees make tents and caravans into homes?Related: Syrian refugees in Jordan: 'If they cut the coupons, we will probably die' Continue reading...

Tory tensions as some MPs say they face battle against ‘bonkers’ Eurosceptics actively promoting WTO termsBrexiters in the cabinet and other Conservative frontbenchers have privately told colleagues they are relaxed about the prospect of Britain crashing out of the EU on to World Trade Organisation rules, the Guardian understands.Senior figures within the party have been persuaded by the argument that members of the WTO are less likely to try to punish the UK, while the European Union is looking to exact a political price for Brexit. Continue reading...

Food and fuel prices drove the consumer prices index to the highest level in almost three-and-a-half years in February

Standard of living fears build as wage growth slows and inflation leaps from 1.8% in January to highest level since September 2013Rising food and fuel prices pushed Britain’s inflation rate to 2.3% last month, the highest rate for more than three years.Inflation was well above the 2.1% expected in a Reuters poll of economists, as grocery bills started rising after years of food getting cheaper. Continue reading...

The exuberant market reaction to his win has not been translated into progress – he must work with Congress to deliverFinancial markets seem convinced that the recent surge in business and consumer confidence in the US economy will soon be reflected in “hard” data, such as GDP growth, business investment, consumption, and wages. But economists and policymakers are not so sure. Whether their doubts are vindicated will matter for both the US and the world economy.Donald Trump’s election as US president has triggered a surge in positive economic sentiment, because he pledged that his administration would aggressively pursue the policy trifecta of deregulation, tax cuts and reform, and infrastructure construction. Republican majorities in both houses of Congress reinforced the positive sentiment, as they signalled Trump would not face the kind of paralysing gridlock that Barack Obama confronted for most of his presidency.Related: Trump faces formidable institutional obstacles – so what can he do? | Barry Eichengreen Continue reading...

•Post-US election stock market boom and rise in oil price swells numbers

New CBI campaign says economy risks being left behind unless UK research budget rises to 3% of GDP from 1.7%Britain must Brexit-proof its economy by ramping up spending on research and development or risk being left behind in the global race to deliver game-changing innovations in areas such as space tourism and robotics, the country’s leading business group has said.The CBI lobby group will launch a campaign on Monday to urge the government to adopt an ambitious new target for R&D spending of 3% of GDP, compared with the current level of 1.7%. Continue reading...

Though he talked tax cuts, Ronald Reagan in fact turned on the public spending taps, to great effect at home and harm abroad. But 2017 is hardly 1981For the first few months after his election, Donald Trump was cast by many in the financial markets as the reincarnation of Ronald Reagan. His plans for deep and widespread tax cuts and a bonfire of regulations would, they said, spark a business renaissance akin to that credited to the stetson-wearing president who dominated the 1980s.Stock market investors lapped up Trump’s speeches and tweets, and sent the main New York share indices to fresh highs. Last October, before the US election, the Dow Jones Industrial Average was chugging sideways below 18,000. By the first week of March, its value had topped 21,000, a rise of almost 17%. Continue reading...

The policy is a deadly obsession that has long passed its sell-by dateWilliam Keegan reminds us that austerity was, and is, a policy choice (“We all need a stiff drink to swallow Hammond’s austerity”, Business, last week). It is based on “the Conservative party’s obsession with shrinking the size of the state and minimising the so-called ‘tax burden’ ”, a “burden” that Keegan also wisely reminds us “helps to ensure we have decent hospitals, schools and infrastructure generally”.This is a deadly obsession that has long passed its sell-by date. Ask a Conservative to defend it and they will reply by asking you if you want to end up like Greece, “a failing state”. The answer to that can be found in Raoul Martinez’s superb new book, Creating Freedom: Power, Control and the Fight for Our Future. He retells the story of Iceland, whose banking collapse was worse than any, but whose people refused to allow its government to accede to the IMF’s austerity demands. Continue reading...

If automation pushes joblessness to 20%, what happens to those who are left behind? Reducing working hours might be part of the solutionOne of the more striking things about economic debate in this country is that there is a broad call for “more reform” and yet an equally narrow view of what such reform should constitute.Economic reform is often synonymous with reducing labour costs and increasing after-tax profit, because much of the debate is generated by those whose view of the world and position in life is benefitted by such outcomes. But many of these styles of reform are most suited to an economy that might be passing us by – one where output is greatly disconnected from employment.Related: Could automation make life worse for women? Continue reading...

Figures next week will show the pummelled pound’s effect on prices, but don’t expect an interest rate hike just yetRising food and fuel costs are expected to have pushed inflation to its highest level in more than three years when official figures are released on Tuesday, underscoring the impact of the Brexit-battered pound on prices in the shops.Economists predict that the data will show inflation, on the consumer prices index (CPI) measure, hitting 2.1% for February, up from 1.8% in January. Continue reading...

All the day’s economic and financial news, as shares in London climb higher and finance ministers meet in Germany

Thinktank says progress has slowed and governments must push through change or face sluggish growth and inequalityGovernments must push through more fundamental reforms to boost growth, cut inequality and protect workers from rapid changes in technology if they are to win back the trust of voters, the west’s leading economics thinktank has warned.The Organisation for Economic Cooperation and Development says stagnating living standards in many countries have left people disenchanted and unwilling to support more changes by their governments in areas such as jobs markets.Related: ILO warns of rise in social unrest and migration as inequality widens Continue reading...

Median price paid for a home leapt 259% between 1997 and 2016 while earnings rose only 68%, say ONS affordability dataRising house prices now stand at an average 7.6 times the average annual salary, more than double the figure for 20 years ago, according to official figures.However, the new headline figure disguises dramatic regional variations. In the affluent London borough of Kensington and Chelsea, house prices are typically 38.5 times greater than annual earnings, but, 330 miles to the north-west, prices in Copeland, Cumbria, which includes the port of Whitehaven, are typically 2.8 times the average salary.

The entrepreneurial spirit cannot flourish if people don’t feel valued, rewarded and, above all, sheltered from severe economic turbulenceUnleash the power of markets and the private sector will deliver returns that raise everyone’s living standards: that’s the market liberalism argument. However, for a decade now we have been living in a world where the opposite is true. GDP rises but wages shrink. The financial crisis was 10 years ago but austerity looks set to continue into the middle of the next decade, as we endlessly wait for the recovery that’s always round the corner.The chancellor, Philip Hammond, berated Labour during his budget speech for wanting to “saddle our children and burden our future”, but young people who entered the jobs market in 2010 will be in their mid-to-late 30s before austerity is projected to end. It’s not “protecting our children’s future” to keep them in low-waged, precarious work from 18 to 38. The UK government is issuing 40-year bonds at 1.87% and, in a fit of perversity, we’re “protecting” our children from those interest payments by forcing them to take payday loans at 1,500%.The NHS saves British business thousands on health insurance, compared with in the supposedly more flexible USRelated: Hammond's NICs U-turn is a political disaster for the government | Larry Elliott Continue reading...

With supermarkets facing tough competition from discounters, acquiring assets such as Argos looks sound“We entered the quarter with deflation and exited the quarter with inflation,” declared Mike Coupe, chief executive of Sainsbury’s, describing shop prices in the most recent trading period. Once upon a time, this would have been taken as excellent news for shareholders, as opposed to customers. Inflationary breezes, allowing prices to be raised faster than overheads, used to be a supermarket’s best friend and surest way to protect profit margins. Not now.Coupe didn’t give a figure for price inflation at Sainsbury’s, but it is unlikely to be as high as he – and his competitors – would wish. Industry consultant Kantar put the rate at 1.4% last month. That was double the rate in the previous month, but we’re not talking about the 5% within six months that his predecessor, Justin King, forecast four months ago for the entire industry.Related: Sainsbury's warns over 'uncertain' impact of pound's Brexit slide Continue reading...

Upbeat Federal Reserve outlook combines with relief at Dutch election result, pushing Amsterdam’s index to nine-year highStock markets across Europe soared as traders reacted to the defeat of an anti-EU candidate in Dutch elections and the latest interest rate announcement from the US central bank.The Federal Reserve accompanied its latest rate rise this week with guidance that it would not tighten policy quite as much as financial markets anticipated this year. That message buoyed share prices, adding to the upbeat mood prompted by the results of parliamentary elections in the Netherlands. Continue reading...

Officials believe letter may have been sent by group that claimed responsibility for parcel bomb sent to German finance ministerA letter bomb that was dispatched to the headquarters of the International Monetary Fund (IMF) in Paris and blew up on Thursday, injuring the employee who opened it, was sent from Greece, the Greek public order minister has said.Greek intelligence officials are working on the assumption that the blast in the French capital may have been orchestrated by an urban guerrilla group that claimed responsibility for a parcel bomb sent to the German finance minister, Wolfgang Schäuble, on Wednesday. Continue reading...

Bank of England will follow Fed with quarter-point rise only when evidence of upward inflationary spiral emergesWe have been here many times before. In the eight years since the Bank of England cut interest rates to a then record low of 0.5%, there has been regular speculation in the City that borrowing costs are heading back up.The latest flurry of excitement was caused when Kristin Forbes broke ranks with her monetary policy committee colleagues and said something should be done about rising inflation. Continue reading...

Monetary policy committee is split 8-1 as members decide base rate of 0.25% is appropriate for post-referendum economyThe Bank of England has held interest rates at their record low amid signs of an internal split emerging about how to tackle rising inflation.The Bank’s monetary policy committee was divided on the rates decision, with Kristin Forbes voting to raise borrowing costs immediately. Other members also indicated that they could join her at future meetings if they felt inflation was rising too quickly.Related: Bank of England votes 8-1 to leave interest rates on hold - business live Continue reading...

The next chapter of austerity is upon us, and the gender inequality within it is shockingThat “austerity is a feminist issue” is now a well-used idiom does not mean it’s any less true. Look at the latest gender breakdown of cuts released this month and what’s striking is that nothing’s changing. According to Sarah Champion, the shadow equalities minister, 86% of the burden of austerity has fallen on women since 2010 – a figure that remains entirely static from last year. Inequality is business as usual: by 2020, a decade on from when austerity first began, men will still have borne just 14% of the total burden of “welfare” cuts.This unequal impact isn’t just contained within the benefit system, but rather spreads to many of the choices the Conservatives are making. NHS and local government cuts of course affect men as well, but as women are a vast chunk of the public sector workforce, they are hurt most when public services are squeezed. Similarly, although it’s rarely talked about in such terms, the crisis in social care is in many ways gendered: it’s largely women who make up home care and agency staff – insecure, low-paid work – while it’s also women who are the bulk of family carers for disabled children and elderly parents. When a council cuts a care package, it’s largely wives, mothers, and daughters doing the unpaid labour to plug the gap.As a new wave of child poverty approaches, it’s working-class mums who will be queuing in food banksRelated: Women bearing 86% of austerity burden, Commons figures reveal Continue reading...

Like London and Buenos Aires, cities can move their nightlife away from drink-dependent culture - if councils and businesses work togetherAfter years of unregulated growth, it looks like the good times may be over for those in the UK who make their living from people going out at night-time.

The Federal Reserve chair, Janet Yellen, announced on Wednesday that the Federal Reserve would raise interest rates. This raise is the second hike in three months, a move Yellen said was spurred by steady economic growth, strong job gains and confidence that inflation was rising to the central bank’s target

Wall Street is reassured by ‘dovish hike’, as Chair Janet Yellen says the US economy is doing well

Bricks and mortar shops are squeezed by online sales and business rates; perhaps Inditex’s Zara points the wayThe news that Jones Bootmaker is on the brink of falling into administration is a reminder of just how tough life is on the high street. The 160-year-old shoe retailer may yet be rescued, but about 1,000 workers are unsure about their future employment.Profits for bricks-and-mortar shops are being squeezed by the rise of online shopping, an increase in staff costs brought on by the introduction of the national living wage, and fierce discounting of the price of their products, which is designed to attract shoppers but hurts profit margins. On top of this is business rates – a tax that takes no account of falling profit and is now more costly than corporation tax for many shops. Continue reading...

Will Fed’s steady march to ‘new normal’ scare away the ghosts of financial crisis?It could have been worse. That was Wall Street’s initial response to the decision by the US Federal Reserve to raise borrowing costs in the world’s biggest economy by a quarter of a point.For once, the market reaction was entirely rational. The increase in interest rates was expected and it would have been a real surprise had Janet Yellen and her colleagues at the US central bank decided against a move.Related: US Federal Reserve raises interest rates to 1% in bid to hold off inflation Continue reading...

Fed chair says US economy in strong health as she announces third rate rise since 2008 and the first of several expected this year

It had been absolutely right to raise contributions, the chancellor said, which was why he was no longer going to do itThe phone call had come through just after eight in the morning while Phil “The Undertaker” Hammond was eating breakfast. It was the prime minister ordering him to bury Class 4 NICs. He had tried telling her that doing a U-turn on your only real budget measure less than a week after it had been announced made him and the government look hopelessly incompetent, but Theresa wasn’t having any of it. The Tory backbenchers were on her back. The Daily Mail was on her back. And now she was on his back.Six hours later The Undertaker rather sheepishly arrived in the Commons to try to explain how it was that, though he still absolutely stood by his budget because it was his budget that was his, he now wanted to fundamentally change it because although he hadn’t broken any promises in the Conservative party manifesto, as that’s not the sort of thing he would ever dream of doing, he had in fact broken the promises he had made in the Conservative party manifesto.Related: Philip Hammond defends scrapping national insurance rise for the self-employed Continue reading...

The chancellor must tell us how extra social care will be funded, after Jeremy Corbyn, Labour and civic society forced him into a U-turnThe government’s U-turn on the unfair £2bn national insurance hike for the self-employed is a humiliation for chancellor Philip Hammond, who has shredded his reputation after only his first budget – and broke a manifesto promise to do it. Labour opposed the measure from the start: Jeremy Corbyn made our opposition loud and clear in his immediate budget response, and Labour MPs hammered the same message home over the next few days. Opposition came from all sides of the house, and from business organisations like the Federation of Small Businesses, leaving the Tory leadership completely isolated.The chancellor’s climbdown will be a huge relief to all those self-employed workers and businesspeople, earning as little as £8,000 a year, who faced a serious increase in their tax bill at a time when average pay for the self-employed has fallen dramatically – their average earnings are now just £12,480 a year.This is the third Tory budget in a row that has resulted in a major U-turnRelated: Hammond's NICs U-turn is a political disaster for the government | Larry Elliott Continue reading...

Making EPA data easily accessible to the private sector plays a significant role in many billion-dollar industries, from renewable energy to auto manufacturing