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Updated 2025-07-08 12:30
Federal Reserve ends Hamlet-like indecision over interest rates
Quarter-point increase in borrowing costs signals gradual end to zero interest rate policy that has been in force for past seven yearsIt has been a long time coming – more than nine years in fact. The last time the Federal Reserve raised interest rates, Tony Blair was prime minister of Britain, George Bush was US president and the iPhone was still a year away from hitting the shops.The quarter-point increase in borrowing costs could hardly be called a spur of the moment decision. On the contrary, the Fed has shown Hamlet-like indecision this year as it has weighed up the pros and cons of abandoning the zero interest rate policy that has been in force for the past seven years.Related: Federal Reserve announces first rise in US interest rates since 2006Related: Interest rates rise: what does the Fed decision mean for you? Continue reading...
Federal Reserve announces first rise in US interest rates since 2006
US central bank signals end to seven years of a monetary policy that began amid the worst financial crisis since the Great DepressionThe Federal Reserve raised interest rates on Wednesday, ending an extraordinary period of government intervention in the financial markets that started at the height of the recession.After holding its benchmark federal-funds rate near zero for seven years, the Fed increased rates a quarter-percentage point. The move signals the end of a monetary policy that began amid the worst financial crisis since the Great Depression.Related: Federal Reserve hikes interest rates seven years after financial crisis – business liveRelated: Interest rates rise: what does the Fed decision mean for you? Continue reading...
Andrew Tyrie seeks Treasury guarantee over loans sold to Cerberus
Chair of Commons Treasury select committee has written to George Osborne to ask for assurance on £13bn sale of Northern Rock loansConcerns that 125,000 former Northern Rock borrowers might be adversely affected by the sale of their loans to a US private equity group have prompted an influential parliamentarian to seek assurances from the Treasury.Andrew Tyrie, a Conservative MP and the chair of the Commons Treasury select committee, has written a letter in relation to George Osborne’s announcement of the £13bn sale of mortgages and unsecured loans to Cerberus, the largest ever financial asset sale by a European government.Related: Northern Rock mortgages worth £13bn sold to US private equity firm Continue reading...
Why hasn't pay kept pace with rising employment?
With workers cheap and easy to obtain, unemployment can come continue to come down without pay inflation picking upThere are more people in work than ever before. The jobless rate is at its lowest since 2006 – the last boom year before the financial markets went haywire. Clearly, the Bank of England should be gearing up to join the Federal Reserve in a coordinated increase in interest rates.Related: UK jobs data: pay growth slows to 2% Continue reading...
UK job data: pay growth slows to 2%
Pay rises have remained low, despite the unemployment rate falling to 5.2%, the lowest since 2006Wage growth across the economy has slowed to 2% despite continued strength in job creation, underlining the financial challenges facing Britain’s workers in the run-up to Christmas.The Office for National Statistics (ONS) said that average wages grew at an annual rate of 2% in the three months to October.Related: Why hasn't pay kept pace with rising employment? Continue reading...
The Guardian view on Britain’s jobs market: Osborne could use Scrooge’s caution | Editorial
2015 has been the year of the pay rise – in 2016 we may not be so lucky“What’s Christmas time to you but a time for paying bills without money; a time for finding yourself a year older, but not an hour richer,” asks Scrooge in A Christmas Carol. “Every idiot who goes about with ‘Merry Christmas’ on his lips, should be boiled with his own pudding, and buried with a stake of holly through his heart. He should!” Ebenezer famously struggled to be Yuletide-appropriate. Even so, as Britons sink into the season to be maxed-out, a bit of Scrooge’s scepticism about how we’re going to pay it all back would be handy. Because while the government is trumpeting the jobs recovery, and there are some grounds for celebration, there are also real causes for concern.But let’s not stint on a hefty dollop of good news: 2015 has been the year of the pay rise. After seven miserable years in which wage increases have lagged behind price rises, salaries are starting to go up in real, inflation-adjusted, terms. And go up sharply: in August, earnings were 3.1% higher than a year ago, even while inflation was zero. These are some of the biggest increases in a decade, albeit largely helped by vanishing inflation rather than generous employers. The one sector where bosses have dug into their pockets is in minimum-wage jobs – where they were forced to by the state jacking up statutory rates for the low-paid. Continue reading...
Number of female billionaires increases sevenfold in 20 years
Asian entrepreneurs pushing numbers up to 145, but still outnumbered by the 1,202 male billionairesThe number of female billionaires worldwide has increased nearly sevenfold in the past 20 years to 145 – and it is Asian entrepreneurs who are driving this growth, according to a study.The report found that women have outpaced men when it comes to membership of the billionaires’ club, with their ranks and wealth growing at faster rates. The number compares with only 22 in 1995. Continue reading...
US inflation points to rate rise, while UK prices stop falling - as it happened
Britain’s consumer prices index crept above zero last month to 0.1%, despite cheaper petrol and food
Scottish councils hold record debts of £14.8bn – and are still borrowing
Guardian identifies further £472m of capital projects funded through Scottish Futures Trust that will add to debt repayments already costing £1.5bn a yearCouncils in Scotland have borrowed record amounts to fund capital projects and are exposing themselves to even greater, long-term debts through private financing contracts organised through the Scottish Futures Trust (SFT).
Scotland's PFI boom means £1.3bn a year bill is in the post
New roads, hospitals and public buildings are being built now, but latest Treasury data shows government repayments will peak in 10 years’ timeTravelling around Scotland, the country feels dynamic. Motorways are being extended, new schools built and modern hospitals are springing up. But these projects are also the largest source of new public sector debt in Scotland and the biggest financial headache for Scottish National party ministers.
Global markets rally ahead of Federal Reserve interest rate decision
Smaller drops in transport costs, including petrol, than in November 2014 contributed to 0.1% rise in UK inflationMarkets on both sides of the Atlantic have bounced back as Federal Reserve policymakers prepared to raise US interest rates for the first time since 2006.
What is inflation? Economics explained - video
Inflation is one of the most important concepts in economics. It’s also one of the simplest. It’s just the average rate that prices are rising. A small amount of inflation is healthy for an economy - but how is it calculated and what happens when it gets out of control? Continue reading...
UK inflation expected to turn positive
Official figures set to show inflation edged up to 0.1% last month after comparatively moderate falls in petrol and alcohol pricesThe UK’s brief period of negative inflation is expected to have come to an end in November but the recent tumble in oil prices should keep price pressures low for some months yet, economists predict.Official figures due out at 9.30am on Tuesday are expected to show inflation to have edged up to 0.1% in November from -0.1% in October on the consumer prices index (CPI) measure, according to a Reuters poll of economists.
World Trade Organisation: 20 years of talks and deadlock
WTO meetings in Seattle, Qatar, Cancun, Hong Kong, Potsdam, Davos - but still no agreement on the Doha roundJanuary 1995: The World Trade Organisation is formed after the Uruguay round trade negotiations spanning 1986-94 were completed.
Hopes of a global trade deal remain low as WTO meets in Nairobi
Trade ministers have their work cut out to solve the 14-year impasse between the developed and the developing world in the Doha round of talksFourteen years of tortuous global trade talks will end in failure this week unless there is a sudden and unexpected end to the impasse between developed and developing countries that has bedevilled negotiations.Hopes are low of a breakthrough at the World Trade Organisation ministerial meeting that begins in Nairobi on Tuesday, with the US openly calling for time to be called on the Doha round of talks that began in the Qatari capital in November 2001.Related: World Trade Organisation: 20 years of talks and deadlock Continue reading...
UK pay rises likely to fade fast, thinktank warns
Resolution Foundation says expected inflation rise will quickly see off any real terms pay growth unless productivity increases significantlyBritain’s long-awaited pay recovery this year will quickly evaporate in 2016 unless productivity significantly improves, a leading thinktank has warned.The Resolution Foundation said real-terms pay growth could slow to less than 1% by the end of next year, from around 2.5% at present. That would be its worst-case scenario with productivity growth failing to pick up and inflation taking off more than expected.Related: UK inflation expected to turn positive Continue reading...
FTSE falls to three-year low as oil price plunge rattles markets
Expected interest rate rise in US weighs heavy on investors as oil price nudges a new 11-year lowThe FTSE 100 has fallen to a three-year low as global markets dropped sharply again, with investors unnerved by a further plunge in oil prices and the prospect of a US interest rate rise this week.In volatile trading, London’s leading index lost 78.72 points or 1.32% to 5874.06 on Monday, its lowest closing level since early December 2012 and its eighth successive daily decline. Continue reading...
Brexit could hurt UK’s credit score, says ratings agency
Fitch, which rates Britain just below top AAA level, warned leaving EU would be ‘moderately credit negative’A vote to leave the EU in the forthcoming referendum could hurt the UK’s strong credit score, the ratings agency Fitch has warned.Fitch, which cut its rating on the UK to a notch below the top AAA level in 2013, said on Monday a vote for Brexit would be “moderately credit negative” for the UK, putting at risk its medium-term growth and investment prospects, its external position, and the future of Scotland within it. Continue reading...
FTSE hits three year low amid falling oil and Fed Week jitters – business live
All the latest economic and financial news, as investors brace for Wednesday’s Federal Reserve meeting.
The strange case of America’s disappearing middle class | Paul Mason
Middle America is being squeezed from both ends, by the rich and the poor. This new insecurity is fertile territory for the likes of Donald Trump
Why the oil price slump hasn't kickstarted the global economy
There has only been a modest boost to global growth despite the oil price plummeting to as low as $35 a barrel. But as prices fall so the risks to producers riseOne of the biggest economic surprises of 2015 is that the stunning drop in global oil prices did not deliver a bigger boost to global growth. Despite the collapse in prices, from over $115 a barrel in June 2014 to $45 at the end of November 2015, most macroeconomic models suggest that the impact on global growth has been less than expected – perhaps 0.5% of global GDP.The good news is that this welcome but modest effect on growth probably will not die out in 2016. The bad news is that low prices will place even greater strains on the main oil-exporting countries.Related: How low can oil prices go? Opec and El Niño take a bite out of crude's cost Continue reading...
Bank of England deputy vows to 'tread carefully' on interest rates
Minouche Shafik says she will not vote for a rate rise until she is convinced wage growth is well establishedThe Bank of England deputy governor, Minouche Shafik, has said she will not vote for an interest rate rise until she is convinced wage growth has recovered.In the latest sign from policymakers that borrowing costs will remain on hold well into 2016, Shafik noted signs that the rate of earnings growth in the UK had “levelled off” recently and that other factors were also keeping inflation low, such as the strong pound and a drop in commodity prices. Continue reading...
Asian stock markets drop as China devaluation, oil and Fed stoke fears
The Nikkei fell 3% at the opening bell in Tokyo while the continued depreciation of the yuan added to fears that the economy is weaker than expectedAsian stocks have fallen sharply and the Chinese currency hit fresh four-year lows as concern about crude oil prices and an expected US rate rise by the Federal Reserve later this week kept investors on edge.European markets seemed likely to follow suit after the People’s Bank of China on Monday continued guiding the yuan lower, setting official trading midpoint with the US dollar at its weakest since July 2011.Related: Markets in fragile mood as Federal Reserve prepares to raise interest rates Continue reading...
President Zuma hires South Africa's third finance chief in a week
Shock announcement restoring Pravin Gordhan to post sends the rand surging after a selling frenzy in marketsPresident Jacob Zuma appointed Pravin Gordhan as finance minister on Sunday, in a dramatic U-turn that gave South Africa its third finance chief in a week after a selling frenzy in the markets.
Tsipras expecting protest after Greece paves way for further privatisations
Greek government agrees deal to reform energy sector and facilitate raft of state sell-offs to meet conditions for €1bn in loansThe Greek prime minister, Alexis Tsipras, has warned of the perils that his government faces after jumping another reform-for-aid hurdle with international creditors.After a week of rigorous negotiations with foreign lenders, Tsipras’s leftist-led government finalised a deal foreseeing further privatisations, reforming the energy sector and opening up the market to non-performing loans. The agreement is slated to unlock another €1bn (£720m) in loans for the debt-stricken country next week.Related: Euclid Tsakalotos: Greek finance minister on the hard path of post-bailout reform Continue reading...
Markets in fragile mood as Federal Reserve prepares to raise interest rates
Shares plunge and oil prices tumble as investors become nervous at Fed decision marking US economy’s strong recovery since 2008Stock market investors are bracing for panic selling in New York and London before what is expected to be the first rate rise by the US Federal Reserve since 2006. The US central bank will decide on Wednesday whether to raise interest rates as a mark of the US economy’s strong recovery since the 2008 banking crash.Fed boss Janet Yellen is expected to announce the increase in borrowing costs despite a slowdown in global trade and a slump in oil and commodity prices that has pushed inflation down to almost zero in most developed countries. Shares plunged on Friday and oil prices tumbled as the date neared for the Fed decision and investors became increasingly nervous of the impact on highly indebted emerging market economies.
Citizen’s income and economic ideas which are true and good | Letters
Declan Gaffney (Even in Finland, universal basic income is too good to be true, 10 December) is right: a universal basic income, or citizen’s income – an unconditional income for every individual citizen – is a lovely idea. It would provide a secure financial floor on which everyone could build; it would make it easier for people to earn their way out of poverty; it would remove intrusive government bureaucracy from a lot of people’s lives; it would enhance social cohesion.There are 101 Reasons for a Citizen’s Income (if anyone is in any doubt about that, then the Policy Press will gladly sell them a book with that title). And yes, a citizen’s income is a useful thought experiment against which to judge proposed changes to the benefits system. But it’s more than that. It really is feasible. Research results published by the Institute for Social and Economic Research show that there are at least two practical ways to implement a citizen’s income and that one of those methods could implement it very quickly: which could be helpful if universal credit proves impossible to implement.Related: A day at 'the gulag': what it's like to work at Sports Direct's warehouse Continue reading...
Live online: the all-new HBOS inquest show
The Treasury committee of MPs will be on camera in all their glory this week as they scrutinise a highly critical report into the bank’s near collapseParliamentary committees are shown live online these days. So, if they wish, Lord Stevenson, Andy Hornby and other former top HBOS people could enjoy some uncomfortable viewing when the Treasury committee meets on Monday and Tuesday. MPs are examining a report on HBOS’s near collapse, which was published last month and blamed its former bosses.First to appear will be Andrew Green, the QC who wrote a separate report criticising regulators’ decision not to punish any HBOS executives apart from former corporate banking chief Peter Cummings. Green said there were grounds to investigate others, including former chief executive Hornby and his chairman Green, and that it was in the public interest for new investigations to be considered. Continue reading...
Beware the balancing act in George Osborne’s false economy
The chancellor’s doctrinaire insistence on a surplus in both current and capital accounts is truly astonishing in a looming worldwide economic slowdownThe more one sees of George Osborne – and this is not a chancellor who keeps himself to himself – the more he appears to be a practitioner of the false economy.Everyone knows what a false economy is: you make a shortsighted saving which only serves to postpone the agony and leads to the need for greater expenditure in the future. In Osborne’s case, this criticism applies at both the macro level (policy that affects the workings of the economy as a whole) and the micro level (policy that affects individual sectors, both public and private, and the household). Continue reading...
Children’s gifts to parents motivated by selfishness, economists claim
Challenge to idea of altruism within families has implications for pension system, says studyIt is, so we are reminded by an advertising onslaught at this time of year, better to give than receive. But for some, gift-giving is not simply selfless. According to a groundbreaking economic analysis, it is a cynical exercise in maximising future rewards.New research to be published in the Economic Journal suggests that when giving to their parents, many adult children make decisions based on what they expect to get in return. Continue reading...
World leaders hail Paris climate deal as ‘major leap for mankind’
Almost 200 countries sign historic pledge to hold global temperatures to a maximum rise of 1.5C above pre-industrial levelsA historic, legally binding climate deal that aims to hold global temperatures to a maximum rise of 1.5C above pre-industrial levels, staving off the worst effects of catastrophic global warming, has been secured.The culmination of more than 20 years of fraught UN climate talks has seen all countries agree to reduce emissions, promise to raise $100bn a year by 2020 to help poor countries adapt their economies, and accept a new goal of zero net emissions by later this century.Related: Obama praises Paris climate deal as 'tribute to American leadership'Related: Grand promises of Paris climate deal undermined by squalid retrenchmentsRelated: Ed Miliband pushes for zero carbon emissions target following COP21 Continue reading...
The rate rise heard around the world: Janet Yellen prepares for her big decision
If, as expected, the Federal Reserve raises US borrowing costs this week, the reverberations will be felt not just in America, but the global economy tooWall Street watchers are calling it the most seminal moment for the global economy since the collapse of Lehman Brothers unleashed a savage financial and economic crisis in 2008. This week, policymakers at the US Federal Reserve are finally expected to begin reversing the emergency measures they took as the world slid into recession.Janet Yellen, the Fed’s chair, had signalled that the central bank could raise interest rates from their record low of 0.25% in September; but the downturn in the Chinese economy, and the resulting turmoil in financial markets, persuaded the Fed to stay its hand. Continue reading...
Banks trumpet bumper year of ‘elephant’ takeover deals
It looked like 2015 would break all merger and acquisition records – and it didBankers call them “elephant deals” – blockbusting takeover bids that slam together vast global businesses. And when the corporate history books are written, 2015 will be remembered as the year of the elephant.A cluster of massive deals have made 2015 a record-breaking year for mergers and acquisitions globally, with the total value of deals breaking the record set in 2007, before the financial crash. According to data from Dealogic, there have been nine deals worth more than $50bn (£33bn) in 2015, five more than in 2014. Continue reading...
US interest rate rise: what the economists say
The Federal Reserve looks poised to raise borrowing costs for the first time in year. The move is widely expected – but not everyone agrees it’s the right moveThe FOMC looks set to raise rates this week. That will likely be a major macro error at a time when oil and commodity prices are tumbling and there is no inflation. Most of the growth in the US economy is driven by the monetary stimulus; tightening now will rapidly have adverse effects, including on the manufacturing sector from the strengthening dollar. Continue reading...
British business is a tale of profit and lost wages
The economy may be growing, but workers aren’t experiencing the prosperity they’re used toSince 2001 the British economy has expanded in real terms by around a quarter, even taking into account the great recession of 2008-2009. But are British households 25% better off? Not at all. The reality is that they have become worse off, with the evidence coming from the ONS’s Family Expenditure Survey. In the past economic growth translated into personal prosperity – but now we live in an era where the economy expands but we don’t get any better off.In 2001 the average household in Britain spent £542.50 a week. Zip forward 13 years to 2014 and how much did they have to spend, after taking inflation into account? Just £531.30 a week, or £10 less, despite the much-trumpeted growth. In some ways it’s actually worse than that – back in 2001 we spent proportionately less on rent, gas, electricity, rail fares and the other humdrum banalities of modern life. An analysis of the data by Savills reveals that the amount being sucked out of households by rent has gone up by 36% since 2008 alone.We may be falling into the same trap as US workers who have seen their real incomes flatline or fall for a generation Continue reading...
IMF boss Christine Lagarde says she wants Britain to stay in EU
George Osborne welcomes upbeat assessment of UK economy from Washington-based organisationThe managing director of the International Monetary Fund has said she wants Britain to stay in the EU, warning that a looming Brexit referendum posed a risk to the UK economy.In an upbeat assessment, Christine Lagarde said the UK was enjoying strong growth, record employment and had largely recovered from the global financial crisis.Related: IMF chief Lagarde highlights Brexit referendum as risk to strong UK economy - liveIntroduced @Lagarde at press conference for IMF’s article IV update on UK economy @hmtreasury today https://t.co/H9vWCzVJwW Continue reading...
Sports Direct is a reflection of the modern British economy | Letters
Sports Direct seems to be a metaphor for the modern British economy. “The conscious strategy would seem to be to rely on cheap labour rather than costly investment,” as your editorial (11 December) says. It also illustrates the epidemic growth of workforce insecurity which plagues a nation scarred by the rise of the precariat. Britain is rapidly becoming the sweatshop of Europe, and this, along with bubbles in consumer debt and house prices, has been a major part in such anaemic recovery as we have seen over the past five years.All credit to the Guardian for bringing this to public notice, and can we have more, please? But given all this, surely we have an open goal for Labour? No – once again they get it wrong, as Ed Miliband did when talking about “predatory capitalism” rather than highlighting the value of businesses that are run ethically and setting out plans to protect them from race-to-the-bottom firms such as Sports Direct and Amazon. John McDonnell’s reported remarks are in the same vein: quite rightly outraged about abuses, but adopting a negative, accusatory tone rather than emphasising that most businessmen are not like Mike Ashley and do not need government to keep them in check. Continue reading...
Lagarde is smiling now but risks she sees for UK aren't easily fixed
Economy’s longstanding problems, notably productivity and housing supply, mean IMF cheerleading could soon fizzle outYou could forgive George Osborne for dreading this latest visit to the UK by Christine Lagarde. Less than three years ago the International Monetary Fund chief dealt what appeared to be a killer blow to the chancellor’s credibility when she told him to rethink his austerity drive. Her chief economist, Olivier Blanchard, went even further and warned Osborne he would be “playing with fire” if he didn’t let up on cuts.Fast forward to now and, as Osborne said himself, Friday’s assessment from the IMF’s experts “could hardly be more positive”. The Fund flagged record high employment, a more resilient banking sector and a pace of economic growth that puts many of the UK’s peers in the shade.Related: IMF boss Lagarde says she wants Britain to stay in EU Continue reading...
The Guardian view on Sports Direct: a bad business | Editorial
The surveillance culture confronting the low-wage workforce at one retailer is disturbing. It is also a symbol of much that is wrong with the British way of businessCogs in the machine would be the cliche, but that really doesn’t capture the disdain of Sports Direct towards its workers. The staff, who sometimes arrive on day one clutching letters from employment agencies about just how readily they can be sacked, would better be described as disposable kit.Some in blue jackets marshal the movements of others in yellow jackets around a Derbyshire warehouse, and neither caste is allowed to wear any of the brands sold by the firm – because it doesn’t trust the staff not to steal. Slipping inside this panopticon, the Guardian uncovered a surveillance culture, with sticklerish clocking-in, intrusive searches and a disciplinary system where an unduly long trip to the loo can earn one of the black marks that tot up to dismissal. The dead time involved in turning out pockets, plus penalties for minor lateness, drags effective pay below the minimum wage. If staff are pushed to the point where stealing can become a temptation, then there are going to be costs in policing the risk. The staff end up shouldering some of these. Continue reading...
VW emissions scandal: misconduct, process failure and tolerance of rule-breaking blamed – as it happened
Groundhog Day for UK economy with wearyingly familiar trade figures
A widening trade deficit and a frothy property market are signs that trouble is brewing. Financial markets should pay more attention to the dataExports down. Imports up. Trade deficit soaring. Yes, it’s Groundhog Day for the UK economy.The latest figures from the Office for National Statistics were wearyingly familiar. Exports of goods and services fell by 1.6% in October, while imports rose by 5.4%, leaving Britain in the red by £4.1bn.Related: UK trade deficit grows amid rise in lorry orders for Christmas deliveries Continue reading...
Bank of England keeps interest rates unchanged
Minutes from rate-setting meeting show MPC thought domestic demand and international activity had barely changed since its last decisionThe Bank of England has kept interest rates on hold this month amid expectations that inflation will remain low after another sharp fall in the oil price and a levelling off in wage growth.Members of the Bank’s nine-member monetary policy committee (MPC) voted eight to one to leave rates at 0.5%, where they have been since March 2009, in a repeat of voting numbers seen in recent months. Sticking to his recent stance, only Ian McCafferty voted for a rise to 0.75%. Continue reading...
UK trade deficit grows amid rise in lorry orders for Christmas deliveries
Gap reaches £4.1bn in October, up from £1bn in September, with goods exports steady but unable to keep up with importsA demand for foreign lorries has worsened Britain’s trade deficit as transport companies scramble to buy vehicles to carry internet shopping deliveries in the run-up to Christmas.The rise in imports of vans and heavy goods vehicles sent the deficit in goods to £11.8bn compared to £8.8bn in the previous month. Continue reading...
North-south divide set to widen over next three years, study shows
Chancellor’s northern powerhouse ambitions unlikely to bear fruit until 2020 as London continues to grow faster than UK average, EY predictsLondon’s economy will continue to outpace the rest of the UK for at least the next three years, exacerbating the north-south divide, despite the chancellor’s “northern powerhouse” initiative, a study shows.Related: The Guardian view on the UK economy: the foundations are looking shaky | EditorialRelated: I feel like a wally for believing George Osborne’s promises to the north Continue reading...
Time to unite Labour’s democratic left | Letters
On Thursday we launch Open Labour, a forum bringing together activists to build a Labour left which is committed to a better quality of debate and political culture within Labour, while focusing on the question of how to win power. Labour’s democratic left has for too long been defined by other currents in the party and has been without any form of organisation. The elections of Ed Miliband and now Jeremy Corbyn have not changed that. Now is the time for those who believe in equality, democracy, solidarity and the emancipating power of the left to come together. Open Labour believes that there must be a place within Labour to debate and shape these values in a respectful way, free from the divisive and intolerant voices that have come to dominate Labour debate, especially on social media.Related: Labour activists launch new group on party's left Continue reading...
Anglo shares hit record low; VW lowers CO2 emissions impact - as it happened
Commodity crisis continues to dog Anglo American, as German carmaker releases some rare good news
Recovery 'too reliant on consumer debt' as BCC downgrades forecast
Economic growth for year forecast to be 2.4%, down from 2.6% estimate, with lack of exports and investment cited by expertsBritain’s economic recovery remains too reliant on debt-fuelled consumer spending, a leading UK business organisation has warned, as it downgraded its growth forecasts in the face of a manufacturing slowdown.The British Chambers of Commerce (BCC) said on Wednesday that it expected economic growth for this year to be 2.4%, down from the 2.6% it was expecting three months ago; and for 2016 its forecast has been revised to 2.5%, down from 2.7%.Related: Consumer spending rise troubles Bank of England Continue reading...
Oil producers prepare for prices to halve to $20 a barrel
Financial market turmoil sees fresh slide in crude, lowest iron ore prices for a decade and losses on global stock marketsThe world’s leading oil producers are preparing for the possibility of oil prices halving to $20 a barrel after a second day of financial market turmoil saw a fresh slide in crude, the lowest iron ore prices in a decade, and losses on global stock markets.Benchmark Brent crude briefly dipped below $40 a barrel for the first time since February 2009 before speculators took profits on the 8% drop in the cost of crude since last week’s abortive attempt by the oil cartel Opec to steady the market.
The Guardian view on the UK economy: the foundations are looking shaky | Editorial
The global recovery is looking poorly. Britain may catch more than a cold“Cecily, you will read your Political Economy in my absence,” orders Miss Prism in The Importance of Being Earnest. “The chapter on the Fall of the Rupee you may omit. It is somewhat too sensational.”Oscar Wilde should have stuck around to read the business pages of a recent newspaper: they make the Indian rupee look like a steel girder. Take the headlines by the close of trade in the City today. Iron ore plunges to a 10-year low. Mining giant Glencore has another shocking day on the stock market. When Wall Street opens at lunchtime, every single company on the Dow Jones slumps. Copper, that leading indicator of the state of the world economy, continues to drift lower and lower. And the cost of a barrel of Brent Crude oil has dropped so low that you can buy one, should you wish, for about the same amount as a pair of kids’ roller skates. Continue reading...
Commodity crunch: Brent crude oil plunges through $40 – as it happened
Rout sends US and Brent crude to their lowest point since February 2009, as iron ore crumbles to its lowest in a decade
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