US president called on top Fed officials to seize control from chair Jerome Powell if he fails to cut interest ratesDonald Trump called on top Federal Reserve officials to seize control from its chair, Jerome Powell, if he fails to cut interest rates, stepping up his extraordinary attacks on the central bank's independence.The US president called Powell a stubborn MORON" in a series of critical social media posts on Friday, days after the Fed held rates steady for the fifth consecutive time. Continue reading...
by Callum Jones in New York and Michael Sainato on (#6Z1Y4)
US president accused of firing the messenger' as he makes claims without evidence about Erika McEntarferDonald Trump fired the federal government official in charge of labor statistics, hours after data revealed jobs growth stalled this summer, prompting accusations that he is firing the messenger".The US president claimed that Erika McEntarfer, commissioner of labor statistics, had faked" employment figures in the run-up to last year's election, in an effort to boost Kamala Harris's chances of victory. Continue reading...
by Lisa O’Carroll, Helen Livingstone and Graeme Wea on (#6Z240)
Markets tumble as US president unleashes global chaos with rates from 10- to 50% due to take effect next weekLeaders of more than 60 countries have been plunged into a fresh race to secure trade deals with the US after Donald Trump unleashed global chaos with sweeping new tariff rates.Trump's latest blitz triggered a wave of market jitters and fears for jobs in some of the poorest countries, as tariff rates were signed off ranging from 50% to 10%. Continue reading...
by Tom Ambrose (now) and Vicky Graham (earlier) on (#6Z1JF)
Chancellor says the government has got to get the balance right on taxation' after call by Anneliese DoddsA new civil service internship scheme will be open only to working-class students as part of a drive to make Whitehall better reflect the country, the government has said.The programme will give students from lower-income backgrounds the chance to apply for paid government placements. The definition of working class will be based on what jobs applicants' parents held when they were 14 and replaces an existing programme open to all. Continue reading...
The August deadline has come, but the dangers to international relations and to world trade are both as real as everDonald Trump's 1 August tariffs deadline did what it was always intended to do. It kept the markets and the nations guessing amid last-minute uncertainty. It attempted to reassert the global heft of the United States economy to take on and master all comers. And it placed President Trump at the centre of the media story, where he always insists on being.In the event, there were some last-minute agreements struck this week, few of them fair or rational in trade terms, most of them motivated by the desire to generate some commercial order. Some conflicts are still in the balance. There were 11th-hour court challenges too, disputing the president's very right to play the trade war game in this way.Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here. Continue reading...
Anneliese Dodds urges government not to duck big decisions' in autumn budgetThe Treasury should consider a wealth tax to close the growing gap in the public finances, according to a Labour former shadow chancellor.Anneliese Dodds, who held the role under Keir Starmer in opposition, said ministers must have a full and frank discussion" with the public about the really big decisions" they had to take at this autumn's budget. Continue reading...
Lobby group says shops have already had to put up prices and new increases would leave households strugglingRachel Reeves has been warned by Britain's biggest retailers that tax rises in her autumn budget could trigger higher shop prices, hitting household incomes and the economy.With high street chains closing stores and cutting jobs, the British Retail Consortium (BRC) said two-thirds of finance directors predicted there would be further price increases over the next year, even before any rise in tax in the autumn budget. Continue reading...
Two Federal Reserve governors vote against decision as US GDP grows at an annual rate of 3% in second quarterThe US Federal Reserve left its benchmark interest rate unchanged on Wednesday, even amid intense pressure from Donald Trump to lower rates.Despite an onslaught of attacks from the White House against the Fed, officials at the central bank said that economic uncertainty" remains too high to lower rates. Continue reading...
Live, rolling coverage of business, economics and financial markets as world's biggest economy grows at 3% annualised rate in data distorted by trade warsBritain's clean energy future risks creating winners and losers" if lower-income households are not shielded from the costs added to energy bills to pay for it, the head of the energy regulator has said.Jonathan Brearley, Ofgem's chief executive, said a systematic approach" to sharing the rising costs of the government's green power ambitions was needed to avoid poorer households facing soaring monthly payments.The safety of our customers remains our highest priority - this principle has consistently guided our approach, and we have increased our cladding fire safety provision to reflect findings from updated fire risk assessments and investigations in the first half. Continue reading...
Trump will need to approve pause, say US representatives after negotiations end with sides failing to break deadlock on trade termsUS and Chinese negotiators have agreed in principle to push back the deadline for escalating tariffs, although America's representatives said any extension would need Donald Trump's approval.Officials from both sides said after two days of talks in Stockholm that while had failed to find a resolution across the many areas of dispute they had agreed to extend a pause due to run out on 12 August. Continue reading...
One hopes cogs are turning in Westminster after Pascal Soriot's affectionate talk of US at pharmaceutical giant's half-year resultsIt was an opportunity for Sir Pascal Soriot, as chief executive of AstraZeneca, the UK's finest pharmaceutical firm, to kill the story stone dead if he wished. Does he want to move the company's stock market listing to the US, as reported by the Times a few weeks ago? He declined to answer. Then he did something else: he turned his press conference after Tuesday's half-year numbers into a declaration of love, more or less, for all things American.The US is the country in our industry where innovation is taking place," he said, noting that half the group's sales will be in the US by 2030. The new multibillion-dollar manufacturing facility in Virginia - part of a $50bn investment in the US over the next five years - had progressed to signoff in 33 days. The US administration is considering AstraZeneca's proposals for reducing medicine prices for Americans. We are a very American company," said the French-Australian Soriot at one point, name-checking his various American senior colleagues. Continue reading...
Live, rolling coverage of business, economics and financial markets as economists say risks to the global economy remain firmly to the downside' amid Donald Trump's trade warDonald Trump is in the UK, and by the looks of it he has been talking to someone with an interest in the oil industry: he has said the UK's taxes on North Sea oil make no sense".The US president wrote on the social network he owns, Truth Social, that the UK should incentivize the drillers" and that there was A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people". Continue reading...
Despite reduced tensions and EU trade deal, US policies are highly uncertain', says Washington-based organisationGlobal growth will be stronger than previously expected this year after Donald Trump scaled back his most extreme tariff threats, the International Monetary Fund said as it upgraded the economic outlook for 2025.The Washington-based organisation said a de-escalation in tariffs" by the White House had spurred a recovery in global trade and a broader economic expansion, though US policies remain highly uncertain" and risks to growth firmly on the downside". Continue reading...
BRC says food prices rose by 4% in July from 2024, while CBI blames economic uncertainty for people not spendingBritain's largest retailers struggled to entice shoppers back to the high street in July as the rising cost of meat and butter drove up food prices, adding to the pressure on household finances.According to the latest snapshot from the British Retail Consortium (BRC) food prices rose by 4% in July from a year earlier, up from 3.7% in June and above the three-month average of 3.5%. Continue reading...
Plaintiffs argue president lacks legal power to impose duties under the International Emergency Economic Powers ActDonald Trump's strategy of imposing sweeping tariffs on America's main trading partners will face a major test in the US courts on Thursday, four days after the president hailed the powerful deal" reached with the EU and just hours before a new round of punishing import duties is set to come into effect.Trump has underpinned his tariff policy with an emergency power that is now being challenged as unlawful in the federal courts. On Thursday the US court of appeals for the federal circuit will hear oral arguments in the case, VOS Selections v Trump. Continue reading...
British consumers are splashing out on prestige lip products', according to market research. And these are not the only little treats that are booming with the big ones out of reachName: The lipstick effect.Age: Around since at least the 1930s. Continue reading...
Live, rolling coverage of business, economics and financial markets as European stock market rally fizzles outUK retail sales slumped for the 10th consecutive month in July, according to a survey of the biggest shops that underlined the weakness of Britain's consumer spending.A third of retailers said that sales declined in July, according to a survey weighted by the size of the business, according to the Confederation of British Industry, a lobby group - although that was an improvement from the 46% balance who said sales had declined in June.Retail annual sales volumes continued to fall in July, although the pace of decline moderated from June's sharp drop. Firms reported that elevated price pressures - driven by rising labour costs - and economic uncertainty continue to weigh on household demand, which has contributed to sales volumes falling since October 2024.These trends of weak demand and uncertainty were mirrored across the wider distribution sector, with wholesale and motor trades also seeing declining sales.However, this is thought to partly reflect the acceleration of business investment and purchase decisions by some companies in March, ahead of the implementation of US tariffs in April.After a strong start to the year, uncertainty in the global economy and international trade policy has continued to slow momentum. While the agreement struck with the US offers welcome relief to certain sectors and boosts the trading outlook, the UK's access to a key export market is still reduced from where it was at the start of 2025, which is likely to weigh on growth.Business investment is expected to remain modest until 2027 and while interest rate cuts should reduce debt service costs and make financing cheaper, this will take time to materialise. Until then, businesses face a period of international uncertainty, alongside elevated labour and energy costs. Continue reading...
by Richard Partington Senior economics correspondent on (#6YY9B)
PM could raise tens of billions' while positioning Britain as progressive, say Thomas Piketty and othersKeir Starmer and Rachel Reeves have been urged by a group of the world's leading economists to use the autumn budget to prepare Britain for the introduction of a new wealth tax to tackle extreme" levels of inequality.With the government under pressure to raise taxes, the group of economists, including the French expert on wealth inequality Thomas Piketty, said the UK prime minister could raise tens of billions of pounds" while positioning Britain as a progressive leader on the world stage. Continue reading...
by Kalyeena Makortoff Banking correspondent on (#6YYX4)
Hedge fund chief Ray Dalio warns over public finances, saying Britain will be forced into spending cuts and tax risesOne of the world's most prominent hedge fund investors, Ray Dalio, has warned that the UK is stuck in a doom loop" as it faces a worrying mix of higher taxes, rising debts and slower growth.Dalio, a US billionaire who founded the hedge fund Bridgewater Associates in 1975, said warning signs over the size of debts in western countries were beginning to flash and flicker", but that the UK government's efforts to raise more funds via taxes risked driving its wealthiest taxpayers out of the country. Continue reading...
by Richard Partington Senior economics correspondent on (#6YY4G)
Exclusive: Increasingly extreme weather a threat to production and supply chains in Britain and elsewhereBritain is at risk of a worsening climateflation" crisis amid the fallout from increasingly extreme weather that could drive up food prices by more than a third by 2050.Sounding the alarm over the financial impact for UK households, the Autonomy Institute thinktank said that climate-induced price increases for everyday food items risked pushing almost 1 million people into poverty without urgent government intervention. Continue reading...
Agreement includes 15% baseline tariff for most EU exports to US after deal reached at Scotland crunch talksDonald Trump has announced a deal with the EU to end four months of difficult negotiations between Washington and Brussels and avert a damaging transatlantic trade war, imposing a 15% import tariff on most EU goods - half the threatened rate.The European Commission chief, Ursula von der Leyen, said we have a deal" after a 40-minute meeting with Trump at his Turnberry golf resort in Scotland where the US president is on holiday for the weekend. Continue reading...
Chancellor is advised to give herself more leeway in the next budget before adjusting taxation or spendingThe International Monetary Fund has urged Rachel Reeves to consider ending the pensions triple lock and charging for NHS treatment as it said the UK government risks being knocked off course in meeting its targets to repair the public finances.In a final version of an annual report on Britain'seconomy, the Washington-based organisation said the chancellor should also give herself more leeway in the next budget before adopting fresh tax or spending measures. Continue reading...
New figures show that the Golden state's rate of investor-owned homes is 19%, with mountain regions up to 83%One in five homes in California is owned by investors, new data reveals, in the latest sign of an affordability crisis that shows no end in sight.The figures, which come from the data tracker BatchData and were analyzed by the Orange County Register, show that California's overall percentage of investor home ownership sits at 19%. Continue reading...
The world's assets are piling up in the hands of the few as growth is built on widening gaps. That's not just unfair - it's economically unsustainableThis year's global wealth report by the City bank UBS confirms what is self-evident but rarely confronted: while riches are accumulating, their distribution remains starkly unbalanced. In the 56 countries and economic areas surveyed, the report says global personal wealth grew 4.6% in 2024. However, not all boats have been lifted by this tide. The gap is growing between those who hold assets and those who don't.The figures are shocking: just 60m of the world's adults - 1.6% of the population - have net personal wealth of $226tn, or 48.1% of all the world's riches. At the other extreme, four in 10 adults - 1.57bn people - have only $2.7tn, or just 0.6% of all the world's personal wealth. Economists now argue that inequality is no longer a by-product of growth but a condition of it.Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here. Continue reading...
Live, rolling coverage of business, economics and financial markets as policy rate left at 2%The FTSE 100 has gained 1% midway through the morning session, helped by bumper results from kitchen supplier Howden Joinery and Dettol-to-Durex manufacturer Reckitt Benckiser.They are up 10% and 9.3% respectively. Airtel Africa's share price is now up 7.5%, while BT has gained 6.7%.Kitchen and interior fittings supplier Howden Joinery reported a rise in first-half profit on Thursday, helped by price hikes and market share gains in a challenging environment.The company's pre-tax profit rose 4.4% to 117m for the six months through June 2025.Consumer-goods company Reckitt Benckiser reported market-beating adjusted profit as cost savings paid off and raised its full-year outlook. The UK company on Thursday said first-half adjusted operating profit, which strips out exceptional and other one-off items, rose 1.8% on year to 1.71bn.Reckitt said the rise reflects efficiency improvements and early delivery of costs savings.Particularly worrying is the sustained impact of the budget measures on employment. Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.The weak growth trajectory and sustained culling of jobs will add to pressure on the Bank of England to cut rates again at its next policy meeting in August. It seems likely that the disappointing growth and labour market trends will increasingly dominate the inflation forecasting narrative, encouraging policymakers to look through' the recent rise in price pressures and instead focus on helping to revive growth. Continue reading...
by Kalyeena Makortoff Banking correspondent on (#6YVSX)
Charlie Nunn says higher taxation would be inconsistent with chancellor's drive for growthBusiness live - updatesThe boss of Britain's largest mortgage lender has warned Rachel Reeves that increasing taxes on banks in her autumn budget would damage Labour's plan for the City of London to power an economic recovery.Charlie Nunn, the chief executive of Lloyds Banking Group, said a rise in bank taxation wouldn't be consistent" with the chancellor's overtures as the government pushes to reboot growth. Continue reading...
Rate would apply to most goods but bloc still hardening retaliatory measures in case Trump does not agree dealThe EU and the US are nearing a trade deal that would place 15% tariffs on most imports from the bloc, it has emerged.The tariff rate, which would mirror a deal struck this week between the US and Japan, would apply to most goods, with some exceptions for products including aircraft and medical devices, according to diplomats with knowledge of the talks. Continue reading...
by Richard Partington Senior economics correspondent on (#6YTZJ)
US president says Japanese imports will face 15% levy instead of threatened 25%, prompting reports of a similar deal with the EUFinancial markets around the world have rallied after Donald Trump announced a trade deal with Japan and speculation that a similar deal would soon be reached with the European Union.Share prices rose sharply in Tokyo, where the Nikkei index of leading Japanese companies increased by 3.5%. European markets followed, with the FTSE 100 gaining 0.4% to close at a fresh record high of 9,061. US markets posted further gains with the Dow Jones rising by over 1% and the S&P closing up 0.78% at a record high. Continue reading...
by Heather Stewart and Richard Partington on (#6YV75)
Chancellor under pressure to recruit new experts as John Van Reenen and Anna Valero return to academiaIn the run-up to her crunch autumn budget, Rachel Reeves will seek to recruit a heavyweight economic adviser after the role of John Van Reenen is reduced.Van Reenen, a well-respected professor from the London School of Economics (LSE) and an expert in productivity, has been chief economic adviser to the chancellor since Labour came to power. Continue reading...
This small cutback is hardly a draconian austerity purge for a country that is broke. But the howls of outrage show a rational debate is unlikelyFrance is skint, but the French are in denial. To judge by the howls of outrage from the left and the hard right of the French political spectrum, you would think the prime minister, Francois Bayrou, had just taken a Javier Milei-style chainsaw to public services, announced Doge-style mass layoffs or imposed swingeing pay cuts.But it was Bayrou's suggestion that the French should give up two of their 11 cherished public holidays - Easter Monday and 8 May, the anniversary of the end of the second world war in Europe - and work instead to increase economic output and hence government revenue that provoked the anger.Paul Taylor is a senior visiting fellow at the European Policy Centre Continue reading...
by Anna Bawden Health and social affairs corresponden on (#6YS2W)
Exclusive: Research on burden of antibiotic resistance for 122 countries predicts dire economic and health outcomesSuperbugs could cause millions more people to die worldwide and cost the global economy just under $2tn a year by 2050, modelling shows.A UK government-funded study shows that without concerted action, increased rates of antimicrobial resistance (AMR) could lead to global annual GDP losses of $1.7tn over the next quarter of a century. Continue reading...
From Rachel Reeves to the MPC, and thinktanks to unions and lobby groups, many of the authoritative voices we hear discussing economics are femaleRachel Reeves is rightly proud of being the first female chancellor of the exchequer, but she is far from alone: the commanding heights of economic policymaking in the UK are becoming much less male.At a Westminster thinktank event last week about whether Labour is still a mission-led government", one of the most striking things was not the panel's answer, which you can probably guess, but the fact that it was made up of three women, and one token man. Continue reading...
The White House is trying to drive out the Federal Reserve chair. Critics warn it would be a costly bid to pass the buckMemo from the White House: inflation is right on track", it declared this week, citing the latest official data. Price growth is now very low", according to Donald Trump. The actual statistics paint a markedly different picture.Just six months after he regained power, in part by promising to rapidly reduce prices, Trump has presided over the chaotic rollout of tariffs on an array of overseas products that many have argued risk having the exact opposite effect. Continue reading...
Rolling coverage of the latest economic and financial newsBusinesses are still in tough" times, despite the drop in insolvencies in June, cautions David Hudson, restructuring advisory partner at FRP.Hudson says:The slight fall in insolvencies this month offers a glimmer of relief - especially for hospitality and retail businesses, which are now reaping the benefits of record hot weather. However, we're still in tough territory. Consumer confidence remains stubbornly low, growth is stuttering - with GDP dipping again in May. June's unexpected jump in inflation will only serve to continue eroding profit margins and consumer demand.This environment is forcing businesses to fight on multiple fronts. Many will likely only be experiencing breathing space after dramatically paring back costs. Until demand shows a more sustained recovery and input costs ease further, there's a risk that this reprieve is just a pause rather than a turning point." Continue reading...
Political economist and author who promoted ideas such as time banks and community sharingIn his 1989 book Building Futures, David Boyle, who has died aged 67 from complications linked to Parkinson's, argued that mainstream economics was failing cities and a new localism could save them. This emphasis on communities rather than large-scale centralised development tied in with the broad theme that David saw as running through his work: The importance of human-scale institutions over centralised ones, human imagination over dull rationalism, and the human spirit over technocratic reduction."Funny Money: In Search of Alternative Cash (1999) explored local economic systems found mainly on a journey through the US. Exchanging services within community systems run by volunteers can be facilitated through time banks". The idea of the time dollar", representing one hour of help, whether grocery shopping or preparing a tax return, was popularised by the Washington law professor Edgar Cahn. Continue reading...