In talks with Tsipras about struggling economy, Lagarde sets out fresh conditions for further financial aid

Isn’t it about time something serious was done about the global lottery that the various stock markets have become, where share trading is just an upmarket form of gambling (Panic selling grips markets as fears for global economy grow, 21 January)? Of course, under capitalism, the basics of what the stock market does (or used to do) are part of the system but now, with trading done every second of every day, the deals have almost nothing to do with the real world. And I haven’t mentioned micro-trading, which happens between computers and faster than any human can witness.How about, for a start, making all deals last for, say, 24 hours? You buy shares and must keep them for a day. Then we could get on to some serious reform, say holding shares for a week at a time, then quarterly? I won’t go quite as far as Jonathan Swift in Gulliver’s Travels, who suggested we should all have to carry all our possessions with us all of the time, but we surely need some sanity and not this perpetual doom and boom stuff we have had this last half century or more. Continue reading...

European Central Bank chief Mario Draghi announces plans to boost EU economies after day of turmoil in global tradingThe European Central Bank brought respite to volatile financial markets after indicating it is ready to inject fresh stimulus into the eurozone as soon as March.

Stocks are having their worst start to a year in history, partly because of a plunge in the price of oil, but few economists see a repeat of the 2008 crisis aheadWall Street is drowning in oil. Stocks are having their worst start to a year in history in part because of a rapid plunge in the price of oil. The price of crude is down 28% this year already, which in turn has dragged down energy company shares in the Standard & Poor’s 500 index by 13%, which has helped pull the overall index down 9%.This even though low oil prices and the cheap prices for gasoline and other fuels that result are wonderful for consumers and many companies.Related: No global economic crisis yet, but the ingredients are there Continue reading...

It’s not just the mania for Keep Calm and Carry On … Britain’s most provocative writer on architecture targets the fashionable revival of mid-20th century aestheticsThe writer and critic Owen Hatherley has become something of a sage of modernism in recent years. Casting his gaze over the built and pop-cultural landscapes, he sorts the echt from the phoney with all the moral certainty of a Ruskin or a Carlyle. His latest book – his sixth – is a short, stimulating polemic against a suite of aesthetic and political motifs united under the promising term, “austerity nostalgia”.For Hatherley, austerity nostalgia is exemplified by the fetishisation of mid-century Danish furniture; by the coveting of the ex-council flat over the suburban maisonette; by the design aesthetic of the home goods shop Labour and Wait. Austerity nostalgia announces itself in san serif fonts. It glories in the stripped-down design of the underground network and the homely experimentalism of the GPO film unit.Related: Keep Calm and Carry On – the sinister message behind the slogan that seduced the nation Continue reading...

The DWP placed sanctions on a schizophrenic man when he fell into difficulties. It was an aggressive and destructive way to treat someone so vulnerableLuke Alexander Loy was not one of George Osborne’s “hard-working people”. The 42-year-old had schizophrenia and was unable to work (or “do the right thing”, as David Cameron now ominously terms being employed . But Luke’s story – his life – is one worth talking about.Luke lived with his mother in their two-bed council house in Birmingham and had built a stable rhythm: carving wood sculptures as art therapy in their front room, going for walks five times a day, and shopping for his elderly neighbours.Under austerity, Britain’s welfare state appears to be sliding into survival of the fittestRelated: Death has become a part of Britain’s benefits system | Frances Ryan Continue reading...

Ban Ki-moon unveils global project after UK development secretary lobbied for greater opportunities for girls and womenThe UN has called for a “quantum leap” forward in the empowerment of women at the launch of a global campaign to fully mobilise the untapped economic potential of half the world’s population.Ban Ki-moon, the UN secretary general, announced in Davos on Thursday that he was creating his organisation’s first high-level panel on women’s economic empowerment, which will come up with a plan of action later this year. Continue reading...

As leaders gathered in Davos, FTSE 100 was gripped by panic selling and entered bear market with Dow Jones also plungingFears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets – prompting a rush to safe havens by investors.Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that China’s slowdown could derail the global recovery at a time when central banks, which came to the rescue in the credit crunch, have only limited firepower.Related: If this market turmoil forces a US rate cut, the outlook will truly be grim Continue reading...

King’s Fund study ranks UK 13th out of 15 original EU members and casts doubt on ministers’ claims they are giving the NHS generous cash settlementsBritain’s spending on its health service is falling by international standards and, by 2020, will be £43bn less a year than the average spent by its European neighbours, according to research by the King’s Fund.The UK is devoting a diminishing proportion of GDP in health and is now a lowly 13th out of the original 15 EU members in terms of investment, an analysis for the Guardian by the thinktank’s chief economist shows.Related: What would you like to see from the NHS' mental health services?Related: NHS has the west's most stressed GPs, survey reveals Continue reading...

There’s a gloomy feeling in the air as world leaders and business chiefs gather at the World Economic Forum in Davos

Dow ends day down 248 points while slumping oil price and gloom at Davos sends FTSE 100 tumbling officially into bear market territory• Dow suffers steep falls as FTSE 100 enters bear market – live updatesGlobal shares tumbled again on Wednesday as fears of an economic slowdown escalated and the oil price hit lows not seen since 2003.European markets collapsed following more sell-offs in Asia. In New York the Dow Jones Industrial Average had lost over 550 points by 1pm ET but staged a late rally and ended the day down 248 points, 1.55%.Ugly, very, very ugly, describes current equity markets, with momentum swinging negative yet again and the bears firmly in control. The fledgling hope from yesterday that markets were on the turn has been quashed by sharp overnight falls in Japan and Asia, which has seen European markets fall aggressively. With every upturn being followed by deeper falls, investors are increasingly wary as it becomes more and more difficult to determine what might happen next.Oil prices remain under pressure, but the consumer benefits of lower energy prices and higher disposable income have yet to filter through to the wider equity market, which remains unremittingly negative in the face of further prospective asset sales by oil exporting countries’ sovereign wealth funds. Continue reading...

Chancellor says former French finance minister is an outstanding leader who has the vision ‘to help steer the global economy through the years ahead’George Osborne has backed Christine Lagarde’s attempt for a second term as managing director of the International Monetary Fund.The chancellor nominated the former French finance minister for another four years as head of the Washington-based organisation, saying she was an outstanding leader who had the vision “to help steer the global economy through the years ahead”. Continue reading...

Jobless rate of 5.1% is lowest since 2006 but slowdown in pay growth likely to further delay any interest rate rise amid signs the UK recovery is cooling fastWage growth slowed in November to its lowest rate since February 2015 in the latest signal that the pace of Britain’s recovery is rapidly cooling down.Wages grew at 2% in the three months to November, down from 2.4% in the previous month, after breaking through the 3% barrier in the summer.Related: Unemployment rate falls to lowest figure for a decade - Politics liveRelated: Young and older people 'experience age discrimination at work'Related: George Osborne has tied a knot of fear and optimism – but is it unravelling? | Polly Toynbee Continue reading...

As shares tumble across global markets, the reaction at the World Economic Forum has varied from pessimism to stoicismI think we’re witnessing a collision of events which has provoked an immediate sense of crisis. Whether it’s commodities, China, oil prices, terrorism, geopolitical turbulence – all have landed particularly in the month of January, and there is an immediate impact which is reflected in the stock market. At the moment what is being discounted are some of the positives that come out of low oil prices in economic terms. It is only being looked at in the lens of bad news. Continue reading...

The days when one country’s economic woes could be insulated from the wider world have long gone. China’s problems could have a fearsome domino effectAnother day, another financial spasm. In London, New York, Shanghai and Frankfurt the story was the same: shares dumped and the oil price crashing to its lowest level since 2003 on fears that the China is heading into a recession that will drag the rest of the world economy down with it.Despite the fresh sell-off in financial markets on Wednesday, this is far from a done deal. For the doomsday scenario to materialise, China would need to have a hard landing, rather than simply a bumpy one, the rest of the world would have to be ripe for its own crisis, and there would need to be a transmission mechanism for delivering a problem centred on east Asia to the rest of the global economy.Related: Beware the great 2016 financial crisis, warns leading City pessimistRelated: China economy grows at slowest pace in 25 years, latest GDP figures show Continue reading...

Commodity prices are falling, crude oil is tumbling, market confidence is crashing... yet the monetary policy committee seems determined not to raise interest ratesThe credibility of the Monetary Policy Committee of the Bank of England in general, and that of its governor, Mark Carney, in particular, is now seriously in question. The concern is that they may have already missed a significant downturn. Brent crude has just fallen below $28 a barrel. Commodity prices are tumbling and global markets are approaching bear territory – and there is no sign of a floor. The US and the UK are both slowing fast. But the MPC has been asleep at the wheel.Related: UK unemployment falls but wage growth weakensThe US and the UK are both slowing fast. But the Monetary Policy Committee has been asleep at the wheelRelated: Davos 2016: FTSE 100 in bear market as global economic fears grow - live Continue reading...

There are growing fears for the health of the global economy, as shown here in graphs charting the fall of commodity prices and stock market valueGlobal stock markets suffered further heavy losses and crude oil prices continued their unrelenting slide, as world leaders and business chiefs gathered at the World Economic Forum in Davos.Related: What is a bear market? Continue reading...

Labour market data shows that despite strong employment the growth in average earnings is half the rate of pre-crash eraCast your mind back 10 years. It is early 2006 and everything seems to be going well. Unemployment is around 5%, the Bank of England prides itself on keeping inflation at or close to its 2% target, earnings are going up by 4% a year.As we now know, this was the equivalent of the Edwardian summer – the calm before the storm. Since the financial and economic crisis of 2007-09, things have never been the same again.Related: UK unemployment falls but wage growth weakens Continue reading...

Migration into Europe could lift GDP via greater state spending and long-term boost to jobs market with negative effects short-lived, says reportThe recent influx of refugees into Europe is likely to raise economic growth slightly in the short term – mainly in Austria, Germany and Sweden – and could deliver a bigger long-term economic boost to the EU if refugees are well integrated into the job market, according to the International Monetary Fund.Related: Davos 2016: Global economic fears grow as stock markets dive - live Continue reading...

US crude oil fell under $28 a barrel, its lowest point since 2003, as investors took fright at increasingly negative sentiment about the global economyAsia Pacific stock markets have been pummelled as investors took fright at a continued slide in oil prices and mounting bearish sentiment about the global economy.Related: Why are we looking on helplessly as markets crash all over the world? | Will Hutton Continue reading...

International Labour Organization predicts joblessness will surpass 200 million by end of 2017 for the first time on recordMore than 3 million people will become unemployed worldwide in the next two years, making existing jobs vulnerable and fuelling potential social unrest as the global economy slows, a report warns.

Some of the emerging markets where the food-to-detergent firm is big are sliding, but through it all the Unilever ship has sailed onPrepare for volatility, says Unilever’s chief executive, Paul Polman. If you’re running a global consumer goods company, this seems a sensible basis on which to plan. The price of oil and other commodities is slippery. Some of the emerging markets where Unilever is big are sliding, as are their currencies. Last year’s backdrop of “intensifying geopolitical instability”, as Polman puts it, remains in place.Investors, on the other hand, will be struck by the lack of volatility in Unilever’s business, taken as a whole. Sales growth last year, measured at the underlying level, was 4.1%, which was within a percentage point of the average over the past decade. Price increases accounted for slightly less than half that increase, suggesting brands such as Dove and Magnum retain clout with consumers. Core earnings per share improved 11% at constant currencies, completing half a decade of steady improvements. Continue reading...

Chancellor George Osborne is very pleased with himself at Treasury Questions – everyone’s a winner in his fantasy Britain. Apart from the losers, of courseParallel worlds, parallel lives. Where most of the UK sees a decline in manufacturing, lay-offs in the steel industry and widespread insecurity about the global economy, George Osborne sees only sunlit uplands, smiling faces and Hovis adverts. Yesterday belongs to him and we are so lucky to have him.“The redundancies at Tata Steel are deeply regrettable,” the chancellor said at Treasury questions, in a voice that expressed more a sense of acceptable collateral damage than regret. “But … ” But George was in charge. A force for good and a force for change. While lesser mortals prepared to quake and quail at the World Economic Forum in Davos, the Übermensch knew no fear. Everything he touched turned to gold.Related: Who doesn't want to see Jeremy Corbyn elected? It would be a glorious six-day reign | Frankie Boyle Continue reading...

PwC survey finds that two-thirds of chief executives see more threats facing their businesses than three years agoThe falling price of oil, the slowing Chinese economy and the risks of terrorist attacks are conspiring to make the chief executives of major companies around the world more concerned about the prospects for economic growth.Related: The Guardian view on the global economy: China sends a shiver through Davos | EditorialRelated: Davos 2016: eight key themes for the World Economic ForumRelated: IMF cuts global growth forecasts Continue reading...

International Energy Agency predicts increase in supply after lifting of sanctions against Iran, pushing prices down furtherThe world could find itself drowning in oil this year and prices could fall further as new Iranian output cancels out production cuts elsewhere, according to the International Energy Agency.An increase in supply and weakening demand growth will ensure there is an overabundance of oil until late 2016 at the earliest, the IEA said in its January report. It said the result would be the third successive year when supply exceeded demand by 1m barrels a day, and the system would struggle to cope.Related: IMF cuts global growth forecasts Continue reading...

Currency traders react to Mark Carney’s downbeat assessment by selling pound to $1.42, its weakest since March 2009The Bank of England governor has sent the pound into a nosedive after he ruled out an early rise in interest rates, saying UK growth was still too weak and pointing to recent turmoil in the global financial markets.Speaking in London as the International Monetary Fund (IMF) downgraded its forecast for global growth this year, Mark Carney said the UK faced “a powerful set of forces” that prevented policymakers from raising rates. “The world is weaker and UK growth has slowed,” he added.Related: No set timetable for rate rise, says Carney, as UK inflation hits 11-month high - liveRelated: IMF cuts global growth forecasts Continue reading...

In a speech at Queen Mary University of London on Tuesday, the Bank of England governor, Mark Carney, says there’s no reason to raise interest rates from their record low of 0.5%, given a collapse in oil prices, volatility in China and weak UK growth. Photograph: Frank Augstein/Getty Images

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GDP figures showing China’s economy grew at 6.8 percent in the final quarter of 2015 indicate a worrying downward trend, says an analyst on Tuesday. ‘It does herald a very severe slowdown in the Chinese economy’, said Enzio Von Pfeil, an investment strategist at Private Capital Limited in Hong Kong. Photograph: Reuters/Bobby Yip

Latest World Economic Outlook report cuts growth by 0.2% in 2016 and 2017 and calls on states to step up public investment or risk derailing recoveryThe International Monetary Fund has added to concerns about the health of the global economy by cutting its growth forecasts for the next two years and warning that recovery from the financial crisis could be derailed altogether if key challenges are mishandled.The Washington-based body said world output would be 0.2 points lower in 2016 and 2017 compared with forecasts made just three months ago – and that the risks to its predictions were to the downside.

World’s second-largest economy posts figures that add to fears of a slowdown that will affect financial markets across the worldChina’s economy grew at its slowest rate in a quarter of a century in 2015, data released on Tuesday showed, increasing pressure on Beijing to address fears of a prolonged slowdown and ease the jitters affecting global markets.The full-year growth of 6.9% was only just short of government expectations of 7% but by contrast, growth in 2014 stood at 7.3%.Related: Why are we looking on helplessly as markets crash all over the world? | Will HuttonRelated: China sees 'many challenges' in 2016 as trade slumps on weak external demandRelated: Australian consumer confidence falls again amid Chinese economy worries Continue reading...

The business world has been awash with fears for China’s economy for some time, but what do Tuesday’s economic figures really show?

All the latest economic and financial news, as world markets continue to gyrate amid fears over China’s economy

Masoumeh Ebtekar tells the Guardian that success of nuclear talks raises hopes for peaceful resolution to Syria conflict, but warns of rival forces stoking ‘Iranophobia’The lifting of sanctions on Iran on Saturday marks a new era in bilateral relations between Tehran and Washington, one of the country’s vice-presidents has said, adding that further rapprochement is contingent on how the US goes about fulfilling its commitments under last summer’s nuclear accord.In an interview with the Guardian, Masoumeh Ebtekar warned against what she said were new attempts in the region to create a sense of “Iranophobia”, though she did not single out by name Tehran’s regional rival, Saudi Arabia. Continue reading...

Nick Bryer, Oxfam’s head of UK policy, discusses a report published on Monday by the charity that shows that 62 billionaires are as wealthy as the poorest half of the world’s population put together, 3.6 billion people. He says that worldwide the richest 1% own more than the other 99% put together

Unipart boss John Neill reckons he has the answer to the UK’s industrial doldrums. So he’s off to Davos to tell everyone, George Osborne includedAs George Osborne heads down to breakfast in Davos this week, he should brace himself for a lecture along with his muesli.John Neill, the businessman who spread the Japanese concept of “lean manufacturing” around Britain, wants a word with the chancellor about the UK’s woeful productivity record. He is on a mission to change the way Britain works, from restaurants to the NHS, and plans to corner Osborne when they are both at the World Economic Forum.Related: Global economic turmoil to dominate Davos discussionsRelated: Inside the Bank of England | Jill Treanor and Larry ElliottRelated: This is the NHS: live from the frontline at St George's hospital in south London Continue reading...

The biggest compliment you can get in the City is ‘professional’. It means you do not let emotions get in the way of work, let alone moralsAmid all the misunderstandings about global finance, the idea that bankers are a bunch of coke-snorting evildoers on the model of Gordon Gekko or the Wolf of Wall Street is probably the most widespread. It is also largely wrong. Worse: this stereotype stops us from seeing the real issue in finance and the publicly listed corporate world generally.When interviewing around 200 bankers and banking staff about finance and morality in the City of London for the Guardian, I was struck by the language they used. Not so much the profanities, though there were many, nor the technical stuff and the three-letter acronyms (TLAs). Most striking were terms that seemed designed to sidestep any possibility of an ethical discussion. When talking of their bank’s use of loopholes in the tax code to help big corporations and rich families evade taxes, bankers used words such as “tax optimisation” or “tax-efficient structures”.Related: Michael Lewis: the scourge of Wall StreetIn most conversations the word ‘ethic’ came up only in combination with ‘work’Related: Why working fewer hours would make us more productive Continue reading...

Charity says only higher wages, crackdown on tax dodging and higher investment in public services can stop divide wideningThe vast and growing gap between rich and poor has been laid bare in a new Oxfam report showing that the 62 richest billionaires own as much wealth as the poorer half of the world’s population.Timed to coincide with this week’s gathering of many of the super-rich at the annual World Economic Forum in Davos, the report calls for urgent action to deal with a trend showing that 1% of people own more wealth than the other 99% combined.Related: Number of female billionaires increases sevenfold in 20 yearsRelated: Givers that keep on giving: the world's top philanthropists Continue reading...

Survey on future of working life predicts white collar and administrative roles to see the greatest job lossesMore than 7m jobs are at risk in the world’s largest economies over the next five years as technological advances in fields such as robotics and 3D printing transform the world of work.According to a report into the impact of the so-called ”fourth industrial revolution”, women will lose out in the workplace as they are less likely to be working in areas where the adoption of new technology will create jobs.Related: Robots rub up with Davos delegates Continue reading...