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by Toby Helm on (#96DR)
Conservative-led Local Government Association warns that fresh round of cuts would devastate local services and communitiesTory council leaders across England and Wales have presented a united front with Labour and Lib Dem-run local authorities as they warn the chancellor, George Osborne, that another round of funding cuts would devastate local services and harm the most vulnerable in society.In a letter to the Observer, council bosses representing every type of local authority in England and Wales, as part of the Tory-controlled Local Government Association (LGA), say they have already had to impose cuts of 40% since 2010 and cannot find more savings without serious consequences for community life and social care, and knock-on effects for the NHS. Continue reading...
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Updated | 2025-04-04 02:00 |
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by Katie Allen on (#961C)
The chancellor’s focus on Manchester and other large urban areas has raised concern that benefits of the scheme will be unevenly spread across the regionWhen George Osborne picked Manchester to make his big post-election “northern powerhouse†pitch, it came as little surprise. The city has been the poster child for devolution. But the focus on Manchester and other big cities has sparked fears in smaller towns that they will get left behind in this latest push to rebalance Britain’s badly divided economy.The thinktank IPPR North is quick to sum up those concerns. “Now we need to see this agenda move beyond core cities. Smaller towns and cities are a crucial part of the northern powerhouse and can help drive the region’s growth, providing they share in the benefits of new powers and prosperity,†says Ed Cox, the thinktank’s director. Continue reading...
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by Larry Elliott Economics editor on (#94YW)
Chancellor promises a ‘budget for working people’, which will also spell out how the Conservatives will cut £12bn from Britain’s welfare billGeorge Osborne will reveal how the government plans to cut £12bn from Britain’s welfare bill when he announces a fresh wave of austerity measures in his second budget in less than four months on 8 July. The chancellor said he wanted to make a start delivering on the commitments made in the Conservative party manifesto and pledged that his package would be a budget for “working peopleâ€.Announcing his decision in an article in the Sun, Osborne said he would provide details of how the government plans to eliminate the UK’s budget deficit – forecast to be £75bn this year – and run a surplus by the end of the parliament. “On the 8th of July I am going to take the unusual step of having a second budget of the year – because I don’t want to wait to turn the promises we made in the election into a reality … And I can tell you it will be a budget for working people.†Continue reading...
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by Nick Fletcher on (#94GY)
Mid-May payment of €500m-worth of wages and pensions comes as country’s credit rating plunges further into junk statusGreece avoided another financial crisis by paying about €500m (£360m) in wages to public sector workers, but suffered another downgrade of its credit rating.“The mid-May payments of wages and pensions ... were made within the scheduled time frame,†the finance ministry said. They had been due on Friday. Continue reading...
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by Angela Monaghan (until 3.00) and Nick Fletcher on (#937M)
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by Michelle Dean on (#941M)
A decade ago, the first Freakonomics book tied together a number of bright ideas about economics and the modern world in a quirky, accessible way, and sold in vast numbers. Now, as the fifth volume comes out, Freakonomics is a brand in itself – and the two men behind it have as many critics as plauditsQuite soon after the Freakonomics guys, Stephen J Dubner and Steven D Levitt, walk into their office on New York’s Upper West Side for our interview, the scene resolves itself into the kind of well-packaged anecdote with which they love to begin their books. Dubner’s small, wiggly, six-month-old dog, Fifi, is jumping all over me. And I – for some reason feeling like I have to explain the cute behaviour of someone else’s animal – say it’s probably because I smell like my cat.“She’s never met a cat,†says Dubner, the journalist, in his declarative New York accent, “I don’t know if she even knows what a cat is.â€Related: Think Like a Freak extract: joining the dots between hot dogs, Van Halen and David CameronRelated: Freakonomics without the facts | Kate Sheppard Continue reading...
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by Barry Eichengreen on (#93T1)
Effective policies today require increasingly complex models that can more fully capture the chaotic dynamics of the twenty-first-century economyThe economics profession was arguably the first casualty of the 2008-2009 global financial crisis. After all, its practitioners failed to anticipate the calamity, and many appeared unable to say anything useful when the time came to formulate a response. But, as with the global economy, there is reason to hope that the discipline is on the mend.Mainstream economic models were discredited by the crisis because they simply did not admit of its possibility. And training that prioritised technique over intuition and theoretical elegance over real-world relevance did not prepare economists to provide the kind of practical policy advice needed in exceptional circumstances. Continue reading...
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by Katie Allen on (#93M7)
Repair and maintenance drives building sector up by 3.9% in March but figure is unlikely to alter weak UK-wide growthBritain’s construction industry enjoyed a rebound in March after a tough winter but the performance looks unlikely to alter an overall picture of weak economic growth for the first quarter of 2015.The Office for National Statistics said construction output rose 3.9% in March, faster than the 2.5% increase forecast by economists in a Reuters poll. The growth, helped by a strong pick-up in repair and maintenance work, followed falls in January and February for the construction sector, which makes up around 6% of the economy.
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by Heather Stewart on (#924K)
Finance minister continues war of words with eurozone policymakers, saying he wished Greece still had the drachma and had not entered monetary unionGreece’s embattled finance minister, Yanis Varoufakis, stepped up his war of words with eurozone policymakers on Thursday, saying he wished his country still had the drachma, and would not sign up to any bailout plan that would send his country into a “death spiralâ€.With Greece facing a severe cash crisis as it struggles to secure a rescue deal from its creditors, Varoufakis – who has been officially sidelined from the debt negotiations – told a conference in Athens that he would reject any agreement in which “the numbers do not add upâ€. Continue reading...
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by Graeme Wearden on (#90VZ)
Rolling business and financial news, as Mario Draghi gives a lecture on monetary policy in Washington DC
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by Larry Elliott Economics editor on (#920W)
Oxford Economics says current forecasts for population and jobs growth are too cautiousThe average cost of a home in London is on course to breach the £1m level by 2030 as house building struggles to keep pace with a rapidly rising population, a leading consultancy is predicting.Oxford Economics warned that affordability problems in the capital would intensify even further if the expected increase in demand for housing coincided with a widening of the gap between rich and poor. Continue reading...
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by Heather Stewart on (#91W7)
The former Goldman Sachs economist, who becomes George Osborne’s commercial secretary, will be made a Conservative life peerJim O’Neill, the former Goldman Sachs chief economist who coined the phrase “Bricsâ€, has been handed a Conservative peerage and a ministerial appointment in George Osborne’s new Treasury team.Speaking in Manchester as he launched the latest phase of his “Northern Powerhouse†initiative, the chancellor said that O’Neill, who will be made a Conservative life peer, would be given special responsibility for driving forward devolution to cities outside London under the title of commercial secretary. Continue reading...
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by Larry Elliott Economics editor on (#91S9)
The author of Capital in the Twenty-First Century has been appointed centennial professor at a new institute looking into global inequalityThe bestselling French economist Thomas Piketty is to join a new institute investigating global inequality set up by the London School of Economics.The LSE has announced that the author of Capital in the Twenty-First Century, last year’s publishing sensation in the social sciences, has been appointed centennial professor at its International Inequalities Institute (III). Continue reading...
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by Guardian Staff on (#91CZ)
Speaking on the BBC's Today programme, Mark Carney, the Bank of England chief, discusses levels of uncertainty in the business community and the prospects of an EU referendum in the UK. Carney says the referendum should happen as soon as necessary to help give business leaders confidence. He also explained that Europe was a vital trading partner for the UK Continue reading...
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by Laura Gardiner on (#914D)
A significant forecast rise in wages is now looking overly optimistic – the shift towards lower-paying jobs has largely seen to thatThe UK’s employment statistics are unambiguously encouraging. Wednesday’s official figures showed employment rose and unemployment fell, strengthening trends in place over the past couple of years. Perhaps more significantly, rising nominal pay and zero inflation pushed real wage growth to its highest level since late 2007, driven by the private sector and the financial, retail and hospitality industries in particular. For a brief moment, it felt like the pay boom we’ve been waiting so long for may finally have arrived.
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by Katie Allen, Philip Oltermann, Julian Borger and A on (#910V)
Growth, trade, immigration, jobs, diplomacy: what would the impact be if a 2017 referendum pushed UK towards the exit?David Cameron’s electoral triumph has brought the prospect of a British withdrawal from the EU one step closer. The prime minister has vowed to reshape Britain’s ties with Europe before putting EU membership to a vote by 2017.But what would “Brexit†- a British exit from the 28-nation EU - look like? Eurosceptics argue that withdrawal would reverse immigration, save the taxpayer billions and free Britain from an economic burden. Europhiles counter that it would lead to deep economic uncertainty and cost thousands, possibly even millions, of jobs.Our current assessment is that leaving the EU would be likely to impose substantial costs on the UK economy and would be a very risky gamble.On the one hand, UK GDP could be 2.2% lower in 2030 if Britain leaves the EU and fails to strike a deal with the EU or reverts into protectionism. In a best-case scenario, under which the UK manages to enter into liberal trade arrangements with the EU and the rest of the world, while pursuing large-scale deregulation at home, Britain could be better off by 1.6% of GDP in 2030.These are not the sort of sums on which the fate of great nations depends – nor on which momentous decisions about EU membership should be made.Related: Europe faces a new existential crisis – Cameron’s victory has brought Brexit a step closer | Natalie NougayrèdeThe UK is roughly 11.5% of GDP – about £185bn a year – worse off because it is a member of the EU instead of being a fully independent sovereign nation.The attractiveness of the UK as a place to invest and do automotive business is clearly underpinned by the UK’s influential membership of the EU.Our research clearly shows that leaving the EU would seriously damage economic growth and jobs in the UK. But the EU can and must be improved. It must not interfere in things which it does not need to do and it must make a better job of doing the things it has to do. We need to continue saying this loudly and clearly. London is Europe’s financial centre so there is a strong national interest in getting this right.Politicians who continue to claim that 3m jobs are linked to our EU membership should be publicly challenged over misuse of this assertion. Jobs are associated with trade, not membership of a political union, and there is little evidence to suggest that trade would substantially fall between British businesses and European consumers in the event the UK was outside the EU.It would adapt quickly to changed relationships with the EU. Prior to the financial crisis, the UK saw on average 4m jobs created and 3.7m jobs lost each year – showing how common substantial churn of jobs is at any given time. The annual creation and destruction of jobs is almost exactly the same scale as the estimated 3-4m jobs that are associated with exports to the EU.It would place the UK in the same position as the US is currently in, along with Indian, China and Japan, all of which manage to export to the EU relatively easily.Although the years immediately surrounding the exit are likely to feature some degree of market uncertainty, if the right measures are taken the UK can be confident of a healthy long-term economic outlook outside the EU.There are a number of free trade agreements currently being negotiated by the EU, including with the US and Japan. The UK with 65 million consumers would not have anywhere near the negotiating power that the EU with its 500 million consumers would have.While we could negotiate trade deals with the rest of the world, we’d have to agree deals with over 50 countries from scratch just to get back to where we are now, and to do so with the clout of a market of 60 million, not 500.The general rule is that if a country like Britain were to cherrypick and discriminate against individual EU member states, the EU would at least threaten to retaliate.The idea [the UK] could have influence in the world outside the EU is risible. Its power and effectiveness is from being a strong leader in Europe.I think from China’s point of view we don’t think that the UK, or France or Germany or any single European countries can play a global role. But the EU is different. It is the biggest market, and China’s biggest trade partner. The EU is seen as a major power in the world. If the UK left, it would hurt the UK much more than the EU.We have always been more comfortable dealing with countries individually than as part of a club. We don’t see the UK as part of the EU, but as a distinct identity because of its history and the Indian diaspora. So it plays a different role in the Indian psyche, a unique case. It is not always positive but it is always distinct. And some of the most strategic elements in foreign policy cannot be conducted through a club like the EU, but as part of a bilateral relationship. Continue reading...
by Angela Monaghan on (#9115)
Mark Carney says prospect of referendum is stoking business uncertainty, which could hurt economy if firms put off investment plansThe governor of the Bank of England has intervened in the EU referendum debate, saying an in/out poll should take place “as soon as necessaryâ€.Related: Brexit – what would happen if Britain left the EU? Continue reading...
by Tim Lyons on (#90R3)
This year’s budget was all about having a go, ‘Tony’s Tradies’ and signalling to the base – oh, and maintaining a useful conceit“Cut anything into tiny pieces,†said the Roman philosopher Seneca, “and it all becomes a mass of confusion.â€The federal budget is a bit like that. Budgets are reported on and analysed exhaustively, with more commentary than an Ashes series and more statistics than Wisden. But it’s a thing cut into a confusing mass of tiny pieces, an event about naked politics and rubbery numbers.
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by Sabrina Siddiqui in Washington on (#909T)
Democrats reach compromise on new votes after decision on Tuesday seemed to deal fatal blow to White House’s pursuit of new on TPP and TTIP free trade agreements with Asia and EuropeThe US Senate reached a compromise on Wednesday to advance Barack Obama’s sweeping trade agenda, one day after a failed vote dealt an early blow to the White House’s pursuit of new free trade agreements with Asia and Europe.
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by Heather Stewart and Angela Monaghan on (#8ZTH)
The latest figures show a mixed bag for European trading partners as France leads the way in growth and Greece plunges back into recessionEurozone growth leapt ahead of the UK and US during the first three months of the year after cheap oil, a weak currency and a huge injection of funds by the European Central Bank pushed economic growth to 0.4%.With only four countries slipping backwards, the 19-member eurozone’s recovery outstripped the 0.3% growth rate recorded by the UK and 0.2% by the US in the same period.Related: Greece back in recession; Bank of England cuts growth forecast - live updates Continue reading...
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by Heather Stewart on (#8YZ6)
Latest inflation report finds GDP and wage growth lower than expected, but also records fall in unemploymentThe Bank of England has cut its forecasts for GDP and wage growth, but insisted Britain’s economic recovery remained “solidâ€.In its quarterly inflation report, the Bank’s monetary policy committee (MPC) predicted growth of 2.5% in 2015, down from the 2.9% it was expecting in February, after GDP was weaker than expected in the first quarter. The MPC also cut its forecast for next year from 2.9% to 2.6%, and for 2017 from 2.7% to 2.4%. Continue reading...
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by Graeme Wearden (until 2.00) and Nick Fletcher on (#8YCP)
The latest eurozone GDP data show France and Italy beat forecasts, but the Greek recovery has been snuffed out
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by Phillip Inman Economics correspondent on (#8Z9R)
Businesses let out a sigh of relief after Mario Draghi’s £1.1tn quantitative easing programme but questions remain over future sustainabilityThere’s a return to healthy growth in the eurozone. Surprised? It’s called the QE bounce.First the head of the central bank says he will inject £1.1tn into the 19-member economic bloc under a programme of quantitative easing (QE). Next, bank lending gets easier. More importantly, businesses breathe a sigh of relief, realising that after four years of austerity someone has put serious money behind the eurozone’s recovery.Related: Greece back in recession; Bank of England cuts growth forecast - live updatesRelated: Schäuble's subplot – a Grexit, it seems, no longer worries Germany Continue reading...
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by Joseph Stiglitz on (#8Z78)
Terms such as ‘investor’ and ‘partner’ are taking on new meanings as multinationals manipulate deals to take legal action against sovereign statesThe US and the world are engaged in a great debate about new trade agreements. Such pacts used to be called free-trade agreements; in fact, they were managed trade agreements, tailored to corporate interests, largely in the US and the EU. Today, such deals are more often referred to as partnerships, as in the Trans-Pacific Partnership (TPP). But they are not partnerships of equals: the US effectively dictates the terms. Fortunately, America’s “partners†are becoming increasingly resistant.It is not hard to see why. These agreements go well beyond trade, governing investment and intellectual property as well, imposing fundamental changes to countries’ legal, judicial, and regulatory frameworks, without input or accountability through democratic institutions. Continue reading...
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by Larry Elliott on (#8Z7A)
Why is it that an economy that is creating jobs at a healthy rate has borrowing costs lower than at any time in the Bank’s history?The last time Britain’s unemployment rate was as low as 5.5% was during the period of phoney calm between the run on Northern Rock and the collapse of Lehman Brothers. At that point, with the economy in the early stages of recession, official interest rates were 5%.Over the past year, employment has grown by 564,000, with an additional 202,000 jobs created in the last three months alone. Yet interest rates stand at 0.5%, which is where they have been for the past six years. And, judging by the latest smoke signals from Threadneedle Street, the Bank of England has no intention of raising them any time soon. Continue reading...
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by Angela Monaghan on (#8YME)
Single-currency bloc grew by 0.4% between January and March, outpacing both the UK and US economiesEconomic recovery in the eurozone accelerated in the first quarter, boosted by a return to growth in France and Italy.Outpacing both the UK and US economies, the single-currency bloc grew by 0.4% between January and March, improving on the fourth quarter of 2014, when gross domestic product increased by 0.3%. It was the fastest rate of growth in almost two years. Continue reading...
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by Jacques Delors on (#8Z12)
The EU should pay for a million young people to gain professional training and skills in member states other than their ownThe plight of numerous young people in Europe is a serious cause for concern, with some 5 million of them – one in four of those eligible to work – currently looking for a job. In some countries, that figure skyrockets to one in two. We are looking at the tragic prospect of a lost, doomed generation.Initiatives have been launched at the European level. However, the overall result has remained disappointing to this day. Most of them support what continue to be national initiatives – this is notably the case for the “Youth Guarantee†and the €6.4bn (£4.6bn) allotted for the fight against youth unemployment. Some are designed to encourage mobility, such as “Your First EURES Jobâ€. This is a move in the right direction, but it is too weak, and it certainly is not the kind of approach – either in its modesty or in its mechanisms – that is going to have any significant impact on youth unemployment levels. Continue reading...
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by Phillip Inman economics correspondent on (#8YTE)
Wage increase may prompt Bank of England to bring forward interest rate rise from 2016 to later this year, analysts sayBritain’s consumer-led recovery should extend into the summer after wage growth jumped above 2% and unemployment fell in March, according to official figures.The pound jumped more than a cent against the dollar after the news. Analysts said the rise in wages could push the Bank of England to bring forward its first interest rate rise since 2007 to later this year, rather than in 2016. Continue reading...
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by Nils Pratley on (#8XYT)
Treasury’s plans to offload shares in Lloyds Banking Group has seen state’s stake fall – but Osborne’s speedier scheme will see the government lose out
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by Dan Roberts and Sabrina Siddiqui in Washington and on (#8XHR)
Senate legislation fails to pass after Democrats put concerns about US jobs ahead of president’s argument that trade deals will boost global economyBarack Obama’s ambitions to pass sweeping new free trade agreements with Asia and Europe fell at the first hurdle on Tuesday as Senate Democrats put concerns about US manufacturing jobs ahead of arguments that the deals would boost global economic growth.A vote to push through the bill failed as 45 senators voted against it, to 52 in favor. Obama needed 60 out of the 100 votes for it to pass. Continue reading...
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by Ian Traynor in Brussels and Katie Allen on (#8XDM)
British chancellor’s warning about UK referendum on EU membership earns mixed reaction while fears of Greek bankruptcy mountGlobal markets were rattled on Tuesday by renewed fears that Greece is close to bankruptcy while tough talk from George Osborne on the UK’s position in Europe added to jitters about the region’s future.
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by Guardian Staff on (#8XBB)
From posh plonk to private jets, the things you buy to feel good about yourself are a booming businessName: Vanity capital.Age: Is a state of mind. Continue reading...
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by Katie Allen on (#8XAA)
Slow capital spending growth is a much debated feature of the recovery. UBS economist Paul Donovan thinks the changing way we work helps solve the puzzleOne of the striking features of the economic recovery in the UK and elsewhere is how sluggish capital spending has been – especially considering that businesses can borrow at rock-bottom interest rates.Why is that? Well, if you are reading this on your laptop, and you use that same laptop for work, you may guess where this is going.One possible explanation lies in the change in working practices.“In 2000, 32% of UK businesses were employers. By 2014, 24% of UK businesses were employers. This raises the obvious question of what on Earth 76% of UK businesses were doing if they were not employing anyone – and the answer of course is that they were single person businesses where the owner was the sole person ‘on payroll’.
by Graeme Wearden (until 2.45pm) and Nick Fletcher on (#8W55)
All the latest economic and financial news, including coverage of the Ecofin meeting in Brussels and Greece’s ongoing bailout talks
by Haroon Siddique on (#8X6W)
Study finds better-educated men more likely to drink hazardous amount than less-educated counterparts, but difference much more pronounced for womenDangerous drinking among better-educated women has contributed to an increase in alcohol consumption over the last 30 years in the UK, bucking a downward trend in industrialised countries, according to a large international study.The report, Tackling Harmful Alcohol Use, by the Organisation for Economic Co-operation and Development found that on average, each person in the UK consumes 10.6 litres of pure alcohol a year, compared with 9.5 litres across the OECD’s 34 member countries. The study said the UK was the 11th heaviest-drinking country out of the 40 that it examined. Continue reading...
by Lisa O'Carroll on (#8X1K)
Bailed-out bank seeks to cross-examine O’Reilly, once Ireland’s richest man and ex-boss of Heinz and Independent newspaper group, over his financial means
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by Phillip Inman Economics correspondent on (#8WE9)
Oil production rise is biggest since March 2014, while figures will cheer George Osborne and new Conservative governmentBritain’s industrial sector bounced back to growth in March, helped by a resurgence in oil and gas production and steadily improving factory output.The healthy figures will cheer George Osborne in the wake of the Conservative election victory after a run of lacklustre data showed the economy slowing sharply in the first three months of the year. Continue reading...
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by Sean Farrell on (#8W6W)
Latest share sale means more than £10bn has been recovered from group bailed out during financial crisis
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by Jill Treanor on (#8VK6)
University of Portsmouth research shows some banks just as vulnerable to collapse despite efforts to improve their resilience
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by Katie Allen on (#8VKG)
British Retail Consortium says like-for-like figures fell 2.4% despite leap in sales of summer clothing and tanning products during sunniest April on recordDemand for summer clothes and tanning products during the sunniest April on record were not enough to stem a drop in retail sales last month as retailers suffered a post-Easter slowdown.Industry figures show that sales fell 2.4% on a like-for-like basis from April 2014, the weakest performance for three years. Continue reading...
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by Sean Farrell on (#8VKE)
As she is named winner of the Veuve Clicquot Business Woman award, the City executive also says she wants more women on company boardsKatherine Garrett-Cox, winner of the 2015 Veuve Clicquot Business Woman award, has called on the government to make it easier for women to return to work after having children.Garrett-Cox, who heads the Alliance Trust investment firm and is one of the most high-profile women in the City, said the Conservatives should continue the work of the last two governments to get more women on company boards. Continue reading...
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by Nils Pratley on (#8V68)
Berlin is no longer worried if Greece has a referendum on bailout terms and possibly exits the euro - Germany just wants some closureThe late news from the make-or-break talks in Brussels was no news at all, really. There were a few encouraging words for the progress Greece is making on its reform plans. Athens also ordered a €750m (£535m) repayment to the International Monetary Fund. But an agreement on releasing €7.2bn of bailout funds? No.There was, though, one intriguing subplot. Germany, in the form of finance minister Wolfgang Schäuble, suddenly seems taken by the idea of Greece holding a referendum. Continue reading...
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by Jill Treanor on (#8V6J)
Pirc claims pay deal for Lloyds Banking Group chief António Horta-Osório is ‘highly excessive’ in runup to bank’s AGM on Thursday
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by Ian Traynor in Brussels and Helena Smith Smith in on (#8TZF)
Move aims to banish fears of insolvency in Athens but little optimism exists about a breakthrough in bailout talks any time soonGreece moved to banish fears it was on the brink of insolvency and default on Monday, ordering the repayment of €750m (£535m) in IMF loans hours before they were due.The payment – timed in a calculated gesture to coincide with the latest exercise in brinkmanship with eurozone creditors in Brussels – came as a relief, though not as a surprise, to senior eurozone officials. Continue reading...
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by Katie Allen on (#8T9R)
First announcement from the Bank under the new Conservative government leaves interest rates at 0.5%. All eyes now on Mark Carney’s appearance on WednesdayThe Bank of England has left interest rates on hold at their record low, as widely expected, and financial markets are now looking to Governor Mark Carney’s appearance on Wednesday for more clues on when borrowing costs will rise.The Bank’s latest monthly announcement on Monday was moved from Thursday last week to avoid a clash with the general election. The nine members of the monetary policy committee met on Thursday and Friday last week and so the outcome of the election would have been clear when they voted to leave interest rates at 0.5%. Continue reading...
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by Kenneth Rogoff on (#8T46)
The debate has focused so intensely on domestic inequality that the far larger issue of global inequality has been overshadowed
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by Katie Allen on (#8RGB)
Latest forecast of 0.5% quarterly growth would surpass both UK and US in much-anticipated boost for single currency blocEurozone politicians are hoping for glimmers of a long-awaited economic rebound this week, with growth in the single-currency bloc forecast to beat both the UK and US.Economists expect the lower oil price to have provided a fillip to eurozone growth in the opening months of the year and have pencilled in a 0.5% pick-up in GDP, according to a Reuters poll ahead of Wednesday’s figures. That would be the fastest for four years.
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by John Hooper Athens on (#8RDV)
Few expect a solution soon to the economic dilemma facing Greece as hardliners defend ‘red lines’ while debt repayments loom and creditors’ attitudes harden“Nothing will change this week,†said Aris Karnachoritis confidently as the waitress handed out bottles of beer and frosted glasses to him and his friends.Constantinos Neocleous, sitting beside him at a table on the beach at Vouliagmeni near Athens, nodded agreement. “It’s not in anyone’s interests to have a crisis now,†he said. Continue reading...
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by John Hooper in Athens on (#8R9P)
Cash-strapped nation is due to repay €770m on Tuesday, with its finance minister indicating it could avoid a default it was thought to be heading forGreece and the eurozone face a week of fresh nail-biting uncertainty as the single currency area’s finance ministers prepare to report on progress towards an agreement with Alexis Tsipras’s government.On Tuesday, Greece faces having to repay around €770m (£560m) to the International Monetary Fund (IMF). The two events had been widely linked. It was assumed that the cash-strapped Athens government would be unable to meet its obligations to the IMF without a cash-for-reforms deal with its creditors that would release more than €7bn.Related: Eurozone pins hope on long-awaited economic rebound Continue reading...
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by Katie Allen on (#8R9R)
Markets keen for long-delayed post-election outlook on inflation and unemployment with rates likely to stay at 0.5%The Bank of England returns to the spotlight this week when it unveils its latest economic forecasts against the backdrop of record low inflation and the prospect of deep government spending cuts.The central bank is almost certain to leave interest rates unchanged at 0.5% when it announces its monthly decision on Monday, a few days later than usual to avoid the general election. City traders will be hanging on Bank governor Mark Carney’s every word at Wednesday’s inflation report, the first significant insight into policymakers’ thinking after six weeks of election purdah, in which officials were barred from speaking in public on the economy. Continue reading...
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