As climate and geopolitics shocks bite, countries are rebuilding food buffers. The UK clings to neoliberal ideas while households pay the priceFood policy across much of the world is changing. But not in Britain. That may be a costly mistake as the prices of essentials rise because of the climate emergency, geopolitical tensions and the fragility of just-in-time supply chains. Many capitals are now reviving their strategic food reserves. European nations such as Sweden, Finland, Norway and Germany are rebuilding stocks dismantled after the cold war. Climate shocks have led to Egypt and Bangladesh boosting similar programmes. Countries such as Brazil and Indonesia - sensitive to the food needs of their vast populations - are also expanding their reserves.The UK, by contrast, has no substantial public food reserves. Its strategy rests almost entirely on global markets and private intentions - an approach shaped by decades of liberalised trade. Even in the event of war, the official advice focuses on households stockpiling essentials. In Britain's view, food security isabout prices, not scarcity of supply.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...

Unions, faith groups and local leaders urge residents not to work, shop or go to school after killing of Renee GoodLabor unions, community leaders and faith groups are calling for an economic blackout in Minnesota on Friday in protest against the surge of federal immigration agents in the state and to mourn Renee Good.Organizers are urging Minnesotans not to work, shop or go to school. The Trump administration has dispatched about 3,000 federal agents to the state, in what it claims amounts to its largest enforcement operation thus far, amid a broader crackdown on immigration. Continue reading...

US treasury secretary says at WEF in Davos that countries and companies should pause and let things play out'

Shops, restaurants and hotels particularly hit by slowdown in hiring, as unemployment remains at 5.1%

Traders have learned to live with the US president's rhetoric, but the EU's measures could go beyond tariffs and into capital marketsThat's how the chancellor's luck runs these days. You arrange to open the day's trading on the stock exchange to hail a new golden age" for the City and bask in the sight of the FTSE 100 index above 10,000, and what happens? You have to skip off to the prime minister's statement on Greenland.In the event, Rachel Reeves needn't have worried about the poor optics of overseeing a terrible day for share prices. Donald Trump's weekend threat of tariffs on eight European countries, including the UK, did not cause an explosion in the London stock market. The Footsie closed down 0.4%, which doesn't register on the doomsday radar, although European stocks did worse. There was even a 7.7bn bid for the insurer Beazley at a fat premium. Continue reading...

European carmakers among hardest hit with US president's talk of Greenland-linked trade levies also pushing down the dollar

Fund warns rising geopolitical tensions could have material impact' on global growth and investment

Economy weathered a fraught geopolitical landscape to reach 5% goal but domestic structural challenges not going away', say experts

Governments opting for oligarchy while brutally repressing protests over austerity and lack of jobs, charity report saysThe world saw a record number of billionaires created last year, with a collective wealth of $18.3tn (13.7tn), while global efforts stalled in the fight against poverty and hunger.Oxfam's annual survey of global inequality has revealed that the number of billionaires surpassed 3,000 for the first time during 2025. Since 2020, their collective wealth grew by 81%, or $8.2tn, which the charity claims would be enough to eradicate global poverty 26 times over. Continue reading...

Losses on stocks likely with precious metals forecast to spike even higher after move to impose 25% levies on European allies

The spectre of rising inflation, slowing global trade and jittery markets has re-emerged as US economic policy divorces itself from any logic

The chancellor has been cosseting City lenders to fuel economic growth but studies show UK plc would be better served by trying to keep them in checkBack-slapping bankers will be thick on the ground in the Swiss ski resort of Davos this week as Rachel Reeves flies in to mix with the global elite. But she might be wise to treat the finance bros with a certain froideur.That has not been Labour's approach thus far: Reeves spared the banks from a windfall tax in her 26 November budget, and the UK's regulators have just loosened capital rules for the first time since the financial crisis. Continue reading...

Donald Trump will lead the largest US delegation ever at the World Economic Forum, as others plan a fightback against his policies including his latest tariff threatsA Spirit of Dialogue": the theme for this year's World Economic Forum, the gathering of the global elite in the sparkling Alpine air of Davos, seems a heroic stretch, when star guest Donald Trump has spent the past year smashing up the world order.The president will touch down alongside the snowcapped Swiss mountains with the largest US delegation ever seen at the WEF, including the secretary of state, Marco Rubio, the treasury secretary, Scott Bessent, the commerce secretary, Howard Lutnick, and the special envoy Steve Witkoff. Continue reading...

Parts suppliers put production on hold' amid mounting confusion as China restricts purchase of the chips and US puts 25% roundabout tariff on their saleSuppliers of parts for Nvidia's H200 have paused production after Chinese customs officials blocked shipments of the newly approved artificial intelligence processors from entering China, according to a report.Reuters could not immediately verify the report, which appeared in the Financial Times citing two people with knowledge of the matter. Nvidia did not immediately respond to a Reuters request for comment made outside regular business hours. Continue reading...

Kevin Hassett, a top contender to replace Jerome Powell, suggests he believes Powell told truth about Fed renovationDonald Trump's top economic adviser, Kevin Hassett, said he expected there was nothing to see here" as the US Department of Justice pursues its criminal investigation of Jerome Powell, the Federal Reserve chair.The Trump administration has faced a chorus of criticism in recent days after it emerged that the justice department had served the Fed with grand jury subpoenas, in a significant escalation of its extraordinary attack on the US central bank's independence. Continue reading...

Experts say central banks are increasingly stuffing their vaults as an insurance policy in a volatile worldFifteen minutes after takeoff, the call came for Serbia's central bank governor: millions of dollars' worth of gold bars, destined for a high-security Belgrade vault, had been left on the runway of a Swiss airport.In air freight - despite the extraordinary value of bullion - fresh flowers, food and other perishables still take priority. We learned this the hard way," Jorgovanka Tabakovi told a conference late last year. Continue reading...

Andrew Bailey says he and heads of other institutions have responsibility to challenge back' populist narratives

Mark Carney holds talks with Xi Jinping on rare Beijing trip as Canada seeks to diversify trade links away from US

Institute for Public Policy Research thinktank report calls on chancellor to pursue policy of securonomics'Tens of thousands of jobs could be lost if the UK's clean energy supply chains were to suffer a shock as a result of an over-reliance on China, a left-leaning thinktank has warned.A year-long disruption to the supply of essential battery components used to manufacture electric vehicles could wipe out production of more than 580,000 electric cars and endanger 90,000 jobs, according to the Institute for Public Policy Research. Continue reading...

US to lower tariffs on Taiwanese goods to 15% as chip and tech businesses pledge $250bn spending in US operationsThe US said on Thursday that it had signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies' investments in America.The agreement, the US commerce department said, will drive a massive reshoring of America's semiconductor sector". Continue reading...

UK economy returns to growth despite pre-Budget jitters, after car production resumed at JLR after cyber attackToday's GDP report shows a pick-up at consumer-facing services businesses in the September-November quarter.That was driven by the travel agency and tour operator sector, by retail, and by sports activities and amusement and recreation activities.The UK economy returned to growth in November despite pre-Budget jitters leading to some inertia among businesses and consumers. Growth was driven by manufacturing during the month with the restart of operations at the Jaguar Land Rover factory feeding through.Beyond manufacturing, the economy was also boosted by a bounce back in consumer spending around the Black Friday sales. With Black Friday seemingly starting earlier and earlier each year, and more retailers participating, the high street rose to the occasion and was able to capture consumer demand in their busiest period of the year. On the flip side, the property market has been subdued since the summer with new home instructions at their lowest level since 2022 and agreed sales also falling. This inaction wasn't limited to the property market with businesses and consumers putting off decisions until they had clarity on what tax and spend changes would be made in the Budget at the end of November.Today's data is welcome news for the UK economy, with GDP growing modestly in November despite the uncertainty in the run-up to the Budget.Given today's figure, we now project that the economy grew 1.4 per cent in 2025 - a rise in the growth rate compared to the year before. Continue reading...

It may well be safer, easier and cheaper for US companies to procure whatever oil the US economy needs at homeThere are a few reasons that Donald Trump - now self-anointed acting president of Venezuela, as well as the United States - might be so excited about appropriating Venezuela's oil.Trump may be counting on some boost from cheap oil to the US economy: he is obsessed with the price of gas. As the midterm elections approach, he has become concerned about unemployment. Deeply imprinted memories of scarcity during the oil crises of the 1970s may prime his belief that cheap oil cures it all. Continue reading...

While better-than-expected data for November offers hope for UK economy, clouds remain on the horizon UK economy grew by better-than-expected despite budget uncertainty

Jaguar Land Rover's recovery from cyber-attack appears to have contributed to GDP growth Growth figures give boost to Reeves - but it's too early to get carried away

Whether it's the financial crash, the climate emergency or the breakdown of the international order, historian Adam Tooze has become the go-to guide to the radical new world we've enteredIn late January 2025, 10 days after Donald Trump was sworn in for a second time as president of the United States, an economic conference in Brussels brought together several officials from the recently deposed Biden administration for a discussion about the global economy. In Washington, Trump and his wrecking crew were already busy razing every last brick of Joe Biden's legacy, but in Brussels, the Democratic exiles put on a brave face. They summoned the comforting ghosts of white papers past, intoning old spells like worker-centered trade policy" and middle-out bottom-up economics". They touted their late-term achievements. They even quoted poetry: We did not go gently into that good night," Katherine Tai, who served as Biden's US trade representative, said from the stage. Tai proudly told the audience that before leaving office she and her team had worked hard to complete a set of supply-chain-resiliency papers, a set of model negotiating texts, and a shipbuilding investigation".It was not until 70 minutes into the conversation that a discordant note was sounded, when Adam Tooze joined the panel remotely. Born in London, raised in West Germany, and living now in New York, where he teaches at Columbia, Tooze was for many years a successful but largely unknown academic. A decade ago he was recognised, when he was recognised at all, as an economic historian of Europe. Since 2018, however, when he published Crashed, his contemporary history" of the 2008 financial crisis and its aftermath, Tooze has become, in the words of Jonathan Derbyshire, his editor at the Financial Times, a sort of platonic ideal of the universal intellectual". Continue reading...

Greater scope for interest rate cuts and reduced fears about government finances prompt bond yields to fallUK borrowing costs have dropped to their lowest level in more than a year, as investors were encouraged by more stable government finances and the prospect of further interest rate cuts.The yield, or interest rate, on 10-year UK government bonds fell to 4.34%, down from 4.41%, to the lowest level since December 2024, with the prospect of the UK public finances being put on a firmer footing lowering the risk of holding UK debt. Continue reading...

Debt-riddled retail giant's demise has cast uncertainty over the future of US luxury fashionBeleaguered high-end department store conglomerate Saks Global filed for bankruptcy protection on Tuesday, a month after missing the deadline on a $100m interest payment, in one of the largest retail collapses since the pandemic.Barely a year after a deal brought the chains Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus together, Saks Global said it had filed for chapter 11 bankruptcy to facilitate its ongoing transformation". Continue reading...

Extreme weather events and biodiversity loss identified as the biggest global threats over a 10-year timeframeEconomic conflicts between major powers are the greatest risk facing the world over the next two years, according to experts polled ahead of next week's Davos summit.Among 1,300 business leaders, academics and civil society figures surveyed by the World Economic Forum (WEF), geoeconomic confrontation" was identified as the most pressing threat. Continue reading...

Ban on private equity firms buying single-family homes in US raises concerns institutions could deepen housing crisis on BritainLeading US investors and private equity firms could step up their foray into UK new-build housing after Donald Trump's move to ban institutional companies from buying single-family homes in the US, raising concerns that investors could cut corners and increase rents".The US president said last week that he would ask Congress to codify the measure as he tries to address concerns that families are struggling to buy or rent a home. The median property sale price was $410,800 (305,000) last year, according to the US Census Bureau. Continue reading...

Jamie Dimon says pressure on chair Jerome Powell could ultimately increase interest rates

In speech, president delivers triumph assessment, claiming US prices are down despite official data showing otherwiseDonald Trump claimed victory on the economy after 12 months back in office on Tuesday, declaring it to be the greatest first year in history" as many Americans express alarm over the cost of living.In a stream-of-consciousness speech at the Detroit Economic Club, the US president delivered his gold-tinted view of how the economy has fared on his watch. Prices were down, he claimed, despite official data showing otherwise, and productivity was smashing expectations". Continue reading...

Central bankers from across the world say they stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell"

Consumer price index rose 2.7% in year to December, in line with November, as president feuds with Fed over rate cuts

Global growth downshifted' since Covid pandemic and sub-Saharan Africa particularly affected, report says

Ten governors including Bank of England's Andrew Bailey and ECB's Christine Lagarde say independence is critical

Highly respected figure has cast off restrained approach in defending central bank from escalating attacksThere are often few surprises with Jerome Powell. At his handful of public appearances each month, the US Federal Reserve chair always sports the same softly stern expression. His voice, typically dispassionate and near-monotone, never wavers.As one of the most powerful officials in the world, commanding a platform that has the ability to move global markets with a few words, Powell is often reserved in a way that fails to yield soundbites in this social media era: boring, even. Continue reading...

Sales of clothes and computers fall, but discount supermarkets Aldi and Lidl enjoy bumper tradingRetailers suffered a drab Christmas", ending the year with disappointing sales in their most important month, according to new data underlining the difficulties facing Britain's high streets.Overall retail sales grew by just 1.2% in December compared with a year earlier, the British Retail Consortium (BRC) said. That was below the 12-month average of 2.3%. Continue reading...

Powell publicly denounced the inquiry as punishment for not bowing to the president's wishes on interest ratesThe US Department of Justice has opened a criminal investigation into the Federal Reserve chair, Jerome Powell, as Donald Trump's White House escalates its campaign against the central bank's independence.In a video posted on Sunday, a typically reticent Powell took the extraordinary step of denouncing the investigation as punishment for not setting interest rates in accordance with the US president's wishes. Continue reading...

Analysts warn that White House pressure on US central bank to cut interest rates could put economy in danger

Rolling coverage of the latest economic and financial news

Picture is as murky as a barrel of oil, with US companies in 2026 expecting their first production drop in four yearsUS shale-oil producers were already contending with oil prices at four-year lows. News that they may soon face a significant competitor in their back yard probably wasn't how frackers wanted to greet 2026.The US capture of Venezuela's President Nicolaa Maduro and his wife, Cilia Flores, hit the share prices of independent shale-oil producers, such as Diamondback Energy and Devon Energy, last week. Continue reading...

Rising costs and economic uncertainty take toll, in contrast to Keir Starmer saying Britain will start to feel richerUK business confidence weakened sharply at the end of 2025 and hiring fell amid rising costs and uncertainty about the economic outlook, according to key business surveys.Contrasting with the prime minister's optimistic new year message that the country was about to start feeling richer again, the jobs market weakened, with full-time and temporary appointments falling in December, according to a study by the accountants KPMG and the Recruitment and Employment Confederation (REC). Continue reading...

Yes, the number of small businesses that filed for bankruptcy in 2025 increased from 2024. But only by 10Are mom-and-pop stores going bankrupt at historically high levels? That would seem to be the impression you'd get from recent news reports referencing data released from Epiq Bankruptcy Analytics, a provider of legal services that specializes in bankruptcy services.Uh-oh! Some have seen this as proof that Donald Trump's policies are bankrupting Main Street. Well, no, not quite. Continue reading...

Oil is US president's motivation but his concept of economic success feels as outdated as his music tastesThe word loot" entered the English language from Hindi in the late 18th century, as the rapacious East India Company plundered its way across the subcontinent.It was a trading company, not a state - but it had the imprimatur of the English crown and its own large private army, mingling commerce and military force and opening the way for British imperial dominance of India. Continue reading...

Hopes that tougher sanctions and lower oil prices could derail Putin's war effort underestimate how far the Kremlin has rewired its economyPacing inside the Kremlin last weekend, as news feeds churned out minute-by-minute reports of Donald's Trump's Venezuelan coup, Vladimir Putin may have been wondering what it would mean for the price of oil.Crude oil has lubricated the Russian economy for decades - far more than gas exports to Europe - and so the threat of falling oil prices, prompted by US plans for control of Venezuela's rigs, will have been a source of concern. Continue reading...

Swedish producer is trying to to accelerate the process of extracting the elements vital for hi-tech productsIt is deep winter with temperatures dropping to -20C. The sun never rises above the horizon, instead bathing Sweden's most northerly town of Kiruna in a blue crepuscular light, or civil twilight" as it is known, for two or three hours a day stretching visibility a few metres, notwithstanding heavy snow.But 900 metres below the arctic conditions, a team of 20 gather every day, forgoing the brief glimpse of natural light and spearheading the EU's race to mine its own rare earths. Despite identification of several deposits around the continent, and some rare earth refineries including Solvay in France, there are no operational rare earth mines in Europe. Continue reading...

Blocking immigration will not make Trump's America great again - for the US to shine, he must let it get brownerHere's one reason Donald Trump seems perennially in a bad mood: he has probably figured out that the America he fantasizes about is out of his reach.However many immigrants he manages to deport or prevent from entering the country, the white paradise he is promising his Maga base, free of Somalis, Mexican rapists" and generally people from shithole countries" - closer in hue to the America where he was born - is not his to offer. Continue reading...

White House is meanwhile facing questions about an apparent embargo breach over Trump's social media postHiring held firm in the US last month, official data showed, amid uncertainty over the strength and direction of the world's largest economy.Employers added 50,000 jobs to the US labor force last month, capping the weakest year of growth since the pandemic, according to data released from the US Bureau of Labor Statistics on Friday. Continue reading...

Economists say fall in US unemployment rate last month means Federal Reserve likely to leave borrowing costs unchanged at this month's meeting

My friend and former colleague Laszlo Czaban, who has died suddenly aged 62, was a senior lecturer at the University of Manchester's Alliance Manchester Business School (AMBS). An intellectual of the first rank and a dedicated scholar and teacher, he arrived from Hungary in 1993 to take a post at Manchester.I and a colleague, Richard Whitley, recruited him to work with us - at the then Manchester Business School - on a research project on economic transformation in post-socialist Hungary. Working with him was an extraordinary intellectual and social experience. Among other things, it rapidly became clear that he was no mere" economist: rather, his knowledge ranged across the social sciences and embraced philosophy and the humanities more generally. Continue reading...