Economics Headlines

  • Trade war: US is putting a knife to China's neck, says top official

    Commerce minister says the resumption of talks depends on US ‘will’ as Beijing also accuses Washington of bullying The United States is putting “a knife to China’s neck” on trade issues, a senior Chinese official has said, as the two sides struggle to find a way to end a months-long standoff over trade. A day after both sides heaped fresh tariffs on each other’s goods, vice-commerce minister Wang Shouwen said the resumption of talks on the matter depended on the “will” of the US. Continue...

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  • Are US stock market highs justified, or is there a bubble?

    Massive earnings might reflect strength – but history suggests we should expect volatility The US stock market, as measured by the monthly real (inflation-adjusted) S&P Composite Index, or S&P 500, has increased 3.3-fold since its bottom in March 2009. This makes the US stock market the most expensive in the world, according to the cyclically adjusted price-to-earnings (CAPE) ratio that I have long advocated. Is the price increase justified, or are we witnessing a bubble? One might think...

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  • New US tariffs on China take effect with no compromise in sight

    Washington imposes $200bn taxes on Chinese goods, while Beijing targets $60bn of US goods The United States and China have imposed new tit-for-tat tariffs against each other’s goods, the latest escalation in a heated trade war between the world’s two largest economies. US tariffs on $200bn worth of Chinese goods and retaliatory tariffs by Beijing on $60bn worth of US products took effect at 0400 GMT. Continue reading...

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  • Rotterdam prepared for worst when Britain crashes out of EU

    In Rotterdam, everyone assumes the UK will leave the single market and customs union. We went to see how it plans to cope with the upheaval Europe’s largest port, Rotterdam, is counting down to Brexit. “In about 200 days’ time, if nothing else happens… we will need to supervise all the goods coming in and out of the UK market,” says Roel van ’t Veld, Brexit coordinator at the Dutch customs authority. Hard Brexit or soft? Chequers dead or alive? Does “max-fac” make any sense? The feverish debate...

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  • Michael Lewis: The Big Short author on how Trump is gambling with nuclear disaster

    Government positions left empty, cronyism, anti-government ideology – everything about Trump’s administration makes America more vulnerable to risk Michael Lewis began thinking about his new book,The Fifth Risk, in late 2016 or early 2017 during the weeks before Donald Trump’s inauguration. He was bedridden after surgery and was “laying there going crazy about Trump,” he recalls. Lewis had just published his latest bestseller, The Undoing Project, about two Israeli psychologists, the Nobel...

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  • Wealthy venture capitalist and political activist Nick Hanauer says there have been 3 fundamental failures of capitalism over the past 40 years

    Nick Hanauer is a wealthy, Seattle-based venture capitalist and progressive political activist. He successfully lobbied for a raise in Seattle's minimum wage, and has been outspoken about raising it throughout the country. He believes that there are three foundational mistakes in the way capitalism has been practiced in the US for the past 40 years. This article is part of Business Insider's ongoing series on Better Capitalism. When Nick Hanauer made a fortune off both an early investment in...

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  • Donald Trump’s currency confusion continues

    The US president blames China but even a basic understanding of economics shows it’s his own policies that bloat the dollar Next month, the US Department of the Treasury is due to submit to Congress its biannual report detailing which countries, if any, are manipulating their currencies to gain an unfair trade advantage. For his part, President Donald Trump is already accusing China of doing so, as he did throughout the 2016 election campaign. And he is reportedly trying to influence the...

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  • Trump hails economy and tells workers: 'start looking' if you want a better job

    President boasts of growth and suggests workers who don’t like their jobs should move elsewhere ‘in our great economy’ Donald Trump urged Americans to “start looking” for new jobs if they were unhappy with their situation as he boasted of economic growth in tweets Thursday. “Financial and jobs numbers are fantastic. There are plenty of new, high paying jobs available in our great and very vibrant economy,” Trump wrote. “If you are not happy where you are, start looking - but also remember, our...

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  • Global economic growth has peaked, warns OECD

    Leading thinktank scales back forecasts and warns escalating trade war is denting investment The west’s leading economic thinktank has warned that the expansion in the global economy may have peaked after cutting its growth forecasts for an array of rich and developing countries. In its latest update on the health of the world economy, the Organisation for Economic Cooperation and Development said the outlook for both 2018 and 2019 was less good than it had predicted in May. Continue reading...

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  • WTO head offers to mediate between China and US over trade war

    Roberto Azevêdo is determined to get the two countries talking and defuse the growing conflict The head of the World Trade Organization has pledged to mediate between the US and China as fears grow that the escalating trade conflict between the world’s two biggest economies could lead to a full-scale global trade war. Related: China hits back at US with $60bn of new tariffs Continue reading...

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  • Andy Haldane thinks we need more folk wisdom in economics – here's why that's actually a good idea

    This key point here, surely, is that we don't particularly need people to be better educated in economics to improve the understanding of how the Bank of England runs monetary policy, or indeed to influence such policy
  • World Bank reports slower progress on extreme poverty

    Syrian war and population growth in parts of Africa hit drive to improve poverty rates The war in Syria and a population surge in sub-Saharan Africa have undermined efforts to reduce the number of people living in extreme poverty, the World Bank has said. In its annual report, the Washington-based development agency said the proportion of people living in such conditions had fallen to a new low of 10% in 2015 – the latest number available – down from 11% in 2013. It meant that the number of...

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  • China appeals for free trade amid tariff battle with Trump – business live

    Beijing urges ‘multilateral’ solution to trade dispute, and promises not to launch a currency warChinese premier: Trade wars aren’t the answerLi: We’ll keep opening China upMarkets rally on hopes of trade war breakthroughComing up: UK inflation and house price data 9.03am BST China is often accused of discriminating against foreign companies on its turf, in favour of local (sometime state-controlled) firms instead. Chinese premier Li Keqiang, though, is promising to give foreign investors equal...

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  • The US-China trade war is unlikely to be settled soon

    Trump needs a quick result but is unlikely to get one without drawing in other nations Jack Ma’s prediction that the US-China trade war could last 20 years sounds plausible. At the very least, the Alibaba billionaire’s opening analysis is surely correct: “If you want a short-term solution, there is no solution.” First, an immediate climbdown by either side is out of the question. Donald Trump’s imposition of 10% tariffs on $200bn of Chinese imports was quickly followed by China’s retaliation –...

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  • Ben Jennings on the latest round in the US-China trade row – cartoon

    China is to slap tariffs on another $60bn of imports in retaliation for Trump’s latest move

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  • Donald Trump thinks it's his fault that Iran's currency is in meltdown. He shouldn't be so arrogant

    The looming crisis in the emerging markets, set off by the run on the Turkish lira, has had a more direct impact on the Iranian rial than anything the US president has said
  • China hits back at US with $60bn of new tariffs

    Response to Donald Trump’s imposition of $200bn tariffs further escalates trade war China is to slap tariffs on an additional $60bn (£56bn) of imports from the US in retaliation against $200bn of new US import tariffs announced by Donald Trump. The latest moves represent a new step towards a full-scale trade war between the world’s two biggest economies. Further escalation is deemed likely because Trump is facing low approval ratings ahead of the US midterm elections while China will not want to...

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  • Even Obama Trade Rep Acknowledges: Trump Is Cleaning Up an OLD Global Trade Mess

    There was an interesting development last night. Former Obama Administration Official: Trump is Addressing ‘Longstanding’ Trade Issues: “Many of the trade issues on which U.S. President Donald Trump is now focusing have been concerns for numerous White House administrations, according to Michael Froman, who served as U.S. Trade Representative under former President Barack Obama…. “‘Different administrations have had different approaches – I was part of | Read More

  • Trade war: Beijing vows to retaliate against Trump's tariffs on $200bn of Chinese goods

    All the day’s economic and financial news, as China accuses president Trump of poisoning trade talks with his latest salvo of tariffsLatest: China pledges to retaliateIntroduction: Trump slaps $200bn tariffs on ChinaChina: Trump has poisoned negotiations 8.51am BST Paul Donovan of UBS Wealth Management has a good take on the US tariffs: 8.51am BST Reminder: China can’t simply retaliate by slapping a 10% tariff on $200bn of US goods, because it only buys around $130bn of stuff from America each...

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  • Christine Lagarde calls for more women to be given top business jobs

    IMF chief says increased effort is needed to meet UN’s goal of ending discrimination Tackling gender inequality will boost economic growth in developing nations, Christine Lagarde has said, as she urged businesses worldwide to appoint more women to senior posts. The head of the International Monetary Fund said increasing the proportion of women in prominent business and finance industry jobs could raise economic dynamism and shift firms into thinking about the long-term future of the planet....

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  • Donald Trump threatens to impose $200bn import tariffs on China in trade war

    US president tweets that countries who don’t make ‘fair’ trade deals with United States will face higher import tariffs Donald Trump has issued China with a renewed threat that he could impose $200bn of import tariffs on Chinese goods arriving in America as part of the escalating trade war between Washington and Beijing. The US president used a post on Twitter to warn foreign countries they would face higher import tariffs should they fail to agree “fair” trade agreements with the US, in a move...

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  • 'Lost': Jake Tapper Gives Up on Alexandria Ocasio-Cortez

    Alexandria Ocasio-Cortez appeared on CNN’s State of the Union Sunday and really did it up right. In the game of winceworthiness, the socialist stepped up to the plate, batted the dirt off her cleats, squinted into the cheap seats, pointed, and took an ultra-svelte stance with her elbow up and her Louisville slugger waaaaay back. Seconds later, the wood-crack of a lifetime echoed | Read More

  • Why countries are competing in happiness rankings – and what it could mean for economics

    A global movement for transforming current economic models to one based on wellbeing is gathering support
  • IMF chief highlights recession risk of no-deal Brexit

    Christine Lagarde says disorderly exit of UK from EU would have ‘dire consequences’ May’s ‘Chequers or no deal’ warning angers Tory rightThe UK economy would rapidly start to contract in the event of a disruptive exit from the EU next spring, according to a stark International Monetary Fund report that highlights the recession risks of a no-deal Brexit. Christine Lagarde, the IMF’s managing director, added that there would be costs to the UK under any outcome that involves leaving the EU....

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