An expected announcement on the future of the country's biggest steel plant has been delayed, after reports that thousands of jobs could be lost

Ireland posts biggest decline, while Germany contracts by 0.1% and France grows by 0.1%

Western companies that sell their Russian assets restricted from taking proceeds in dollars and eurosRussia has reportedly imposed additional currency controls in an attempt to prop up the falling rouble, restricting western companies that sell their Russian assets from taking the proceeds in dollars and euros.International companies that want to exit Russia after its invasion of Ukraine have to sell their assets in roubles under new government restrictions, according to the Financial Times, which cited people familiar with the matter. Continue reading...

Bank criticised by MPs for being too slow to reward savers as it announces 15% rise in net interest income and $3bn share buybackHigher interest rates helped HSBC to more than double its profits and hand over $3bn (2.5bn) to shareholders, as MPs criticised the largest UK banks for being too slow to reward savers.The London-headquartered bank said it was launching a share buyback, and paying a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as three consecutive quarters of strong financial performance". Continue reading...

Rolling coverage of the latest economic and financial news, as German GDP shrinks slightly in the third quarter of the year

Remortgaging at lowest level since January 1999 as borrowers face higher repaymentsUK mortgage approvals slumped in September amid mounting signs of stress in the property market, according to official figures before the Bank of England's next decision on interest rates on Thursday.Figures from the central bank showed net borrowing of mortgage debt decreased from 1.1bn in August to a net repayment of 900m in September - the lowest since April this year. Continue reading...

Escalation of Israel-Hamas war into Middle East-wide conflict would disrupt oil supplies and stoke food prices, says BankOil prices could soar to a record high of more than $150 a barrel if the war between Israel and Hamas leads to a repeat of the full-scale conflict in the Middle East witnessed 50 years ago, the World Bank has warned.In the first major assessment of the economic risks of an escalation of the war beyond Gaza's borders, the World Bank said there was a risk of the cost of crude entering uncharted waters".A small disruption" scenario, in which the global oil supply would be reduced by 500,000 to 2m barrels a day -roughly equivalent to the reduction seen during the Libyan civil war in 2011. The oil price would rise to a range of $93 to $102 a barrel.A medium disruption" scenario - roughly equivalent to the Iraq war in 2003 - where the global oil supply would be reduced by 3m to 5m barrels a day. Oil prices would rise by 21% to 35% initially, taking them to between $109 and $121 a barrel.A large disruption" scenario-comparable to the action taken during the Yom Kippur war of 1973 - in which the global oil supply would shrink by 6m to 8m barrels a day, resulting in a 56% to 75% increase in prices to between $140 and $157 a barrel. Continue reading...

Industry leaders want three-year policy to be extended in next month's autumn statementJeremy Hunt is poised to reject business calls to use next month's autumn statement to extend a 10bn tax cut aimed at boosting corporate investment in the UK, despite growing concerns over the economy.At the spring budget in March, the chancellor introduced the multibillion-pound full expensing" investment relief by saying he wanted to make it permanent as soon as we can responsibly do so" to help kickstart economic growth. Continue reading...

Resolution Foundation says higher interest rates have led to a fall in house prices and pension potsThe recent rise in interest rates has been blamed for ending Britain's wealth boom and causing total household wealth to plunge by a quarter since the Covid-19 pandemic.A report by the Resolution Foundation, a thinktank, and Financial Fairness Trust - an independent charity historically funded by Standard Life now known as abrdn - said the fall was due to a drop in house prices and pension pots, which account for about 4 out of every 5 of total wealth, and played a leading role in rising wealth across the country over the 40 years leading up to the pandemic. Continue reading...

With wages growth and job vacancies slowing, the monetary policy committee should hold interest rates again if it wants to avoid storing up troubleThe Bank of England has waited a long time for the jobs market to cool down, and now it has.On Thursday, the central bank's interest rate setters will meet at their Threadneedle Street headquarters, and the expectation is that a rise in unemployment, a fall in vacancies and a weakening of wages growth will persuade them to leave interest rates unchanged at 5.25%. Continue reading...

Collaboration and funding are key to reversing the regional divide, but both are in short supplyThe idea that governments should act to level up Britain is nothing new. For at least a century there has been an acceptance that something needs to be done for those parts of the country initially hit by the long-term decline of cotton, coal and shipbuilding, and subsequently at the sharp end of the deindustrialisation of the 1980s.But only in recent years has regional policy become sexy, and for that we have Brexit to thank. The EU referendum was a wake-up call to Britain's political class. Continue reading...

Taxes spent wisely improve lives and attract investors - and in fact leaving the EU has made cutting them harder than everOne of the phrases which do little to help public discussion of economic and social policy is the tax burden". Often when I come across it I am reminded of a master at my grammar school who used to delight in annoying his pupils by informing us that we were the taxpayer's burden".Now, some taxes are no doubt wasted, and people have a right to approve or disapprove of the projects to which their taxes are put. But taxation is necessary for a civilised society and, as the population ages and the demands on the public purse grow, taxes are increasing as a proportion of the national income. Continue reading...

Constrained on multiple fronts by finances and resistance from both wings of his party, the PM still has a few vote-winning optionsExhausted by scandals, deflated by byelection defeats and uninspired by their leader at Conservative party conference, many of Rishi Sunak's MPs are not looking forward to the next year in politics. It's hard to muster the enthusiasm to come out fighting given everything that has happened," said one Tory adviser.But Sunak appears still to be energised by the prospect of governing for at least another 12 months - and has explicitly said he wants to get things done in the next year. What can a country achieve in 52 weeks? Watch this space," his new promotional video said this week. Continue reading...

Russian central bank says current inflationary pressures have significantly increased to a level above its expectations

Two-point rate rise surprises analysts as central bank blames 6.6% inflation on consumer demand

The future that technology elites like to imagine looks remarkably similar to the one we're inDo you support sustainability, social responsibility, tech ethics, or trust and safety? Congratulations, you're an enemy of progress. That's according to the venture capitalist Marc Andreessen.In his new self-published Techno-Optimist Manifesto, Andreessen presents his case for the advancement of technology under capitalism as virtuous" and capable of creating abundance that lifts all humans". Along the way he champions trickle-down economics (famously effective at increasing inequality), claims technology can solve any problem and suggests that slowing AI development is akin to murder. Continue reading...

Eurozone central bank gives press conference after pausing its cycle of rate hikes, as inflation slows and Europe's economy weakens

High wages and a tight labor market powered consumer spending, leading to GDP growth of 4.9%The US economy grew at its fastest pace in nearly two years in the third quarter as higher wages from a tight labor market helped to power consumer spending, again defying dire warnings of a recession that have lingered since 2022.Gross domestic product increased at a 4.9% annualized rate last quarter, the fastest since the fourth quarter of 2021, the commerce department's Bureau of Economic Analysis said in its advance estimate of third-quarter GDP growth. Economists polled by Reuters had forecast GDP rising at a 4.3% rate. Continue reading...

Widely expected decision by European Central Bank follows 10 consecutive rises in borrowing costs

Governments face surge in cost of borrowing fuelled by high interest rates and conflict in Middle EastThey punish governments that dare to deviate from financial orthodoxy. They strike fear into the hearts of finance ministers. They were seemingly a dying breed in the years between the crash of the late 2000s and the 2020 Covid-19 pandemic, but now the bond market vigilantes are heading back into town.There was a time, not so long ago, when governments were able to borrow as much as they wanted at rock-bottom rates. For almost three years, investors paid for the privilege of lending the German government money because bond yields were below zero. Continue reading...

Bosses warn European Commission president that rules of origin', which come into force in January, will harm EU productionThe bosses of Europe's largest carmakers have urged the president of the European Commission to postpone the cliff-edge" introduction of post-Brexit tariffs they say will harm EU electric vehicle production.Renault, Mercedes-Benz, Volvo and Ferrari were among the 13 large manufacturers who wrote on Tuesday to Ursula von der Leyen asking for a delay to rules of origin" that are scheduled to come into force on 1 January. Continue reading...

Unctad outlines conditions last year, with unemployment rate of 45% one of highest in worldIsrael's blockade hollowed out Gaza's economy and left 80% of its inhabitants dependent on international aid even before the current crisis erupted, the UN has said.In a report outlining conditions in the Palestinian territory last year, the UN Conference on Trade and Development (Unctad) said two-thirds of Gaza's population was living in poverty, while its unemployment rate of 45% was one of the highest in the world. Continue reading...

Strong quarterly inflation figures sends market scrambling as odds on for interest rate hike at Reserve Bank's Melbourne Cup Day meeting

Quarterly CPI was higher than economists' expectations and will increase speculation that the Reserve Bank may again raise interest rates

Exclusive: Poll shows young people willing to make big lifestyle changes but baulk at smaller gesturesThey are willing to have smaller families, stop using cars and - albeit in smaller numbers - go vegan for the planet, but abandoning single-use plastics and growing a few more plants could be a step too far.Across Europe, according to a seven-country survey, it seems young people are more willing than older generations to make big lifestyle changes that would help combat the climate crisis - but are less convinced by smaller gestures. Continue reading...

Rishi Sunak's decision to dilute net zero policies has become even more shortsightedEarlier this year, the world economy had a lucky escape. After a mild winter in Europe, energy prices were in retreat as the continent shifted away from Russian gas supplies. Inflation was cooling, while economic growth remained resilient.Hello lower gas prices, bye-bye recession," analysts at the US investment bank JP Morgan wrote in January. Less than a year later, the Israel-Hamas war serves as a stark warning that the global energy crisis has far from vanished. Continue reading...

With the market expected to improve this year, the Conservatives will doubtless seek to exploit the reliable vote-winning toolProperty prices will go back up next year. Not by much. And not by enough for those who chart their wellbeing by the value of their home. In the pantheon of property price recoveries, it will rank among the weaker ones, though the Conservative party will be hoping it provides a lifeline.That's the view of some economic forecasters - minus the political implications - who say house prices could exceed general inflation, ending a brief 18-month period when stagnant property values made flats and houses marginally more affordable. Continue reading...

The staples of your weekly shop are changing fast ... and it's not only in sizeYou take the spreadable butter out of the fridge and put it on your bagel; you are sure it is more watery than it used to be. You pick up the bagel and some filling falls out - is the hole bigger? The coffee seems to have run out again, so you seriously consider a stiff drink but your gin seems to have less kick than it used to.After you've eaten, you wash your hands - the bar doesn't seem as big and there's less lather - and then you squeeze out the last toothpaste from a tube you're sure used to last longer. You wonder: is everything a bit worse than it used to be? Continue reading...

The postwar generation has benefited from good pensions and now interest rate rises, but while its spending has boosted the economy, it has many downsides - not least pricesRishi Sunak has pledged to halve inflation this year, but faces a challenge from the verygroup of core voters he hopes will keep him in office: baby boomers.Born in the postwar years between 1946 and 1964, and now aged 59 to 77 years old, boomers are contributing to stubbornly high inflation with their spending splurges. Armed with final-salary pensions or good jobs, and boosted by a rapid rise in interest rates on their nest eggs, millions of boomers are defying the wider economic gloom to keep spending. Continue reading...

Pound hits five-month low vs euro, shares slide in London, and UK 30-year gilt yields hit highest since 1998

Despite figures for six months to end of September, analysts play down chance of pre-election tax cuts

On Thursday protesters chanted: Off fossil finance!' and held a banner reading: Fed Is Burning: Money, Futures, Planet'The Federal Reserve chair, Jerome Powell, was escorted out of an event Thursday afternoon after a group of climate protesters briefly took the stage before he was due to give a speech. He took the stage after a 15-minute delay.At the Economic Club of New York, protesters stormed the stage holding a banner that read Fed Is Burning: Money, Futures, Planet" and chanting Off fossil finance!" Powell, who was on stage, briefly left the event before returning to deliver his speech as planned. Security officials cleared protesters from the room. Continue reading...

Three crypto groups are being sued by New York for allegedly defrauding investors of $1.1bn, while financial markets remain on edge

OBR says it underestimated strength and persistence of inflation as well as impact of high energy pricesThe Treasury's independent economic forecaster has admitted it underestimated the scale of the inflation shock sparked by the Covid pandemic and Russia's invasion of Ukraine.Blaming the rapid succession of shocks hitting the economy, the Office for Budget Responsibility said it significantly underestimated the strength and persistence of inflation". Continue reading...

Resolution Foundation also calls for Bank to have power to set negative interest rates in response to future downturns

Credit rating agency says further deterioration in Israel-Hamas war could raise oil prices with knock-on effect for inflationThe global economy risks suffering a renewed inflation shock from the war between Israel and Hamas, a leading credit rating agency has warned, amid growing concern over a sharp rise in oil prices.Standard & Poor's, which rates the creditworthiness of governments and companies, said the conflict threatened to compound an already fragile global outlook, as the world's leading central banks battle inflationary pressures sparked by the Covid pandemic and war in Ukraine. Continue reading...

UK consumer prices inflation remained at 6.7% in September, dashing hopes of a fall, as petrol and diesel prices increase

Economists are examining how the conflict could escalate as they plan for the next big global shockWarning bells went off in financial markets the instant the extent of the deadly Hamas attack on Israel became apparent - and it is easy to see why.One of the rules of thumb of geopolitics is that recessions are sparked by a sharp jump in oil prices, and the cost of crude is sensitive to events in the Middle East. Continue reading...

From sugar to butter and transport to holidays, how the cost of everyday items varies

Ministers face anxious wait and consumers more pain on prices as September rate stays steady

Rate is unchanged in September, raising questions over next Bank of England decision on interest rates

Basic pay outpaces inflation for the first time in almost two years, but fall in vacancies suggests jobs market is cooling

Wages outpace inflation for first time in almost two years, driven by growth in City of London

Ministers likely to be discussing 7.9% increase rather than 8.5% by choosing triple-lock figures selectively

UK stuck between weak economic growth and risk of persistently high inflation, says thinktankThe government has no room for unfunded pre-election tax cuts despite having pushed through a colossal" 52bn a year stealth raid on household incomes on Rishi Sunak's watch, the Institute for Fiscal Studies has warned.Britain's foremost economics thinktank said the dire state of the public finances meant that attention-grabbing tax cuts risked stoking inflation, leading to higher Bank of England interest rates and a lengthy recession. Continue reading...

Rolling coverage of the latest economic and financial news, as Huw Pill warns against declaring premature inflation victory

Huw Pill raises possibility of interest rate rise, saying war between Israel and Hamas may affect oil priceThe Bank of England has more work to do" to ensure inflation is brought back under control, Threadneedle Street's chief economist Huw Pill has said.Raising the possibility of an increase in borrowing costs from the Bank, Pill said the fact that the headline measure of the cost of living was now falling was not enough to claim victory. Continue reading...

Fall from 6.7% in August signals prices are still rising as higher cost of oil feeds throughHeadline inflation eased again in September, official figures are expected to show this week, while pay growth is slowing.Economists polled by Refinitiv expect the Office for National Statistics (ONS) to say annual inflation fell slightly to 6.5% in September from 6.7% in August. However, that is still well above the Bank of England's 2% target. Continue reading...

Rightmove says 0.5% rise is smallest for time of year since financial crisis 15 years ago as higher interest rates hit homeUK house prices are rising at the slowest rate for this time of year since the 2008 financial crash, according to new data that highlights the impact on the housing market of higher interest rates.The average new asking price rose by 0.5% in the month to 7 October to 368,231, but it was the smallest post-summer bump since the 2008 crisis, according to property website Rightmove. Continue reading...

The failure of the Conservative party's flagship project of levelling up is a huge opportunity for LabourDiminished by outsourcing, impoverished by Westminster-imposed austerity, and constrained by one of the most centralised polities in the world, local government in England has endured a miserable first quarter of the 21st century.Levelling up, the Conservative party's response to the regional discontent exposed by the Brexit referendum, contrived to add insult to injuries already inflicted. Too often amounting to a top-down, pork barrel exercise, it required local councils to participate in Hunger Games-style competitions for Whitehall largesse. Many wasted millions of pounds on bids, only to be told that London says no". The various pots of money released in any case failed to compensate for the cuts to council funding from 2010 onwards. Continue reading...