Economics Headlines

  • Trade war fears hit markets as Trump threatens China investments – business live

    All the day’s economic and financial news, as shares are hit by Donald Trump’s latest salvo against ChinaTrump to block Chinese firms from investing in US tech companiesUS could restrict tech exports to China tooPresident also tells partners to drop tariffs, or elseShares fall in Asia and Europe 8.43am BST The Wall Street Journal says the Trump administration is determined to protect US companies from having their tech secrets snaffled by Chinese rivals. We’ve got trillions of dollars seeking...

    the Guardian
  • London still the most desirable city for overseas workers

    UK overall drops to fifth in survey because of cross-border movement fears after Brexit London has retained its position as the most desirable city for overseas workers, beating New York, Berlin and Barcelona, according to the latest study by the Boston Consulting Group and totaljobs.com. The UK overall, however, has dropped three places in the country rankings over concerns about the cross-border movement of workers following Brexit. The study also found that the number of British workers...

    the Guardian
  • UK-focused firms have struggled since Brexit vote, analysis finds

    KPMG finds companies earning profits mostly abroad have benefited since EU referendum Businesses that earn most of their profits abroad have benefited since the Brexit vote from an inflow of funds from investors at the expense of domestic companies that rely on sales in the UK, according to two separate analyses of the London stock market. In the two years since the EU referendum, the disparity between the share performances of companies that operate largely inside the UK and ones that...

    the Guardian
  • Five things to look out for as European leaders meet to discuss a potential trade war

    The Bank of America estimates that were the US to increase tariffs from 2.5 per cent to 25 per cent, that would cut EU GDP by at least 0.3 per cent. So what will Europe do?

    www.independent.co.uk
  • Serious questions are being raised about what we want from central banks – here's what we should be asking

    Although droves of politicians in the UK, US and across the EU have moaned about the decisions of central banks, virtually none have called for decisions on interest rates to be put back into the hands of politicians

    www.independent.co.uk
  • Theresa May must pick a side as Brexit fears for industry increase

    PM will head to latest EU summit with employers such as Airbus reconsidering investment in UK Britain in 2016: the Conservatives are making a mess of running the nation, cutting public services to the bone and tearing themselves apart over Europe, while Labour under Jeremy Corbyn fail to make serious inroads as the opposition party of the day. Fast forward two years since the Brexit vote and very little has changed. David Cameron might well have vanished from political life and Corbyn has indeed...

    the Guardian
  • Chinese retaliatory tariffs aim to hit Trump in his electoral base

    The president has claimed that trade wars are ‘easy to win’ but Beijing and the EU plan to hit back against states that elected him Washington’s penchant for brandishing “big sticks” will come back to haunt it, China Daily, official organ of the Chinese government, warned on Friday as trade tensions between the two countries continued to fray. And China, and the EU, have identified just where that haunting will begin: in America’s heartland. For Donald Trump, the threat of a trade war with...

    the Guardian
  • Tit-for-tat tariff battle could spark downturn in global economy – BIS

    Warning comes as Donald Trump steps up hostility with some key trading allies An escalation of protectionist measures could spark a fresh downturn just as the global economy is picking itself up after the last one, the international body that represents the world’s central banks has warned. The Bank for International Settlement (BIS) said there were already signs that “the ratcheting up of rhetoric” was weighing on investment. It comes as Donald Trump steps up hostility with some of the US’s key...

    the Guardian
  • There’s no panic yet: but Trump’s trade war could get out of hand

    The president’s tough tweets about EU car imports on Friday create another unstable element in a widening confrontation It’s a skirmish, no more than that. The trade tariffs going up around the world might be adding millions to the cost of importing goods, but it’s not a war and it won’t mean the end of global growth. Or at least that seems to be the general view. The International Monetary Fund (IMF), the Organisation for Economic Cooperation and Development (OECD), and the majority of...

    the Guardian
  • Don’t wait for worried workers to call the shots on wages

    The Bank of England fears low unemployment will cause runaway pay – but it has misread the situation The bargaining power of the average British worker should be back to where it was when Tammy Wynette topped the charts with Stand By Your Man and the Rolling Stones announced an upcoming American tour with a performance from the back of a truck on Fifth Avenue. May 1975 was the last time the unemployment rate stood at 4.2%. Back then official statistics showed that wages and salaries were...

    the Guardian
  • After Brexit, the Bank of England will have a new boss – and new problems

    Mark Carney steps down next summer. His successor will face not just personal scrutiny, but questions about the job itself Philip Hammond has spent many idle moments thinking about who should succeed Bank of England governor Mark Carney. How, the chancellor asks himself, can he repeat the stunning, rabbit-out-of-a-hat moment when No 11’s previous incumbent, George Osborne, said in 2013 that the Canadian central banker who was heading the global post-crash clean-up operation was coming to help...

    the Guardian
  • Hello guv’nor: who’s in the running to take over at the Bank of England?

    The leading candidates to become Britain’s top central banker after Mark Carney leaves next summer Mark Carney steps down next summer and candidates are limbering up to replace the governor of the Bank of England, one of the most prestigious roles in central banking. A former member of the bank’s rate-setting monetary policy committee, Andrew Sentance, added some edge to the contest last week by demanding that the new head must not be “jetted in from overseas” and must have a better grasp of the...

    the Guardian
  • Tailspin review: a treatise on US social decline that doesn't blame Trump

    Steven Brill’s analysis of inequality and social stasis is part humblebrag, part jeremiad aimed at the author’s fellow elites Dink Stover lives. But the stereotypical Wasp of Owen Johnson’s 1912 Yale novel is keeping different company. The grandchildren of Ellis Islanders have become alumni, their children legacy admissions. The faces and surnames of the “haves” have changed. Unfortunately, the great American meritocracy has come to resemble a hereditary caste system. Related: The Great Revolt...

    the Guardian
  • Greece 'turning a page' as eurozone agrees deal to end financial crisis

    Athens hails agreement to give country access to markets in August after final bailout Greece’s government has said the country is “turning a page” after eurozone member states reached an agreement on the final elements of a plan to make its massive debt pile more manageable, ending an eight-year bailout programme. “I have to say the Greek government is happy with this deal,” the finance minister, Euclid Tsakalotos, said on Friday. “But at the same time, this government will not forget what the...

    the Guardian
  • UK faces risk from slump in China, warns Bank of England

    Financial links to Hong Kong mean that Chinese slowdown could have serious UK impact The Bank of England has warned that the health of China’s economy poses a greater risk to the UK’s financial stability than previously realised. New analysis from the Bank has found that a sharp economic slowdown in China would have a serious impact on the UK. If China’s credit boom blows up, Britain would suffer serious economic harm, it says, adding: “China’s credit boom is now one of the largest and longest...

    the Guardian
  • Trump threatens car tariffs after EU sets up £2.5bn of levies on US

    Bourbon whiskey, Levi’s and Harley-Davidson on list as EU measures comes into force Donald Trump has threatened to widen the mounting trade dispute between US and the EU by imposing tariffs on European cars, after Brussels made good on its threat of retaliatory levies on American products including bourbon whiskey, Levi’s jeans and Harley-Davidson motorbikes. Raising the stakes in the tit-for-tat exchange of import tariffs threatening to spark a global trade war, the US president tweeted in...

    the Guardian
  • The Bank is betting on strong GDP for August interest rate rise

    Anything less than 0.4% for the second quarter could spell yet another embarrassing delay Here we go again. The Bank of England has restarted its drumroll in preparation for a rate hike. Andy Haldane, the Bank’s chief economist, has joined the rate-risers, expanding their number to three. As a whole, the nine-strong committee stuck to its line that the miserable 0.1% growth in GDP in the first quarter was a weather-induced blip. Its view that momentum will recover in the April to June quarter...

    the Guardian
  • Bank of England interest rate decision and Greek debt relief talks

    All the day’s economic and financial news, including the Bank of England’s interest rate vote and a eurogroup meeting on GreeceUK interest rate decision at noonEurozone finance ministers to discuss Greek bailoutAthens: We need substantive debt relief 8.56am BST Morgan Stanley predict that the Bank of England will hold interest rates today, in a 7-2 split (the same as last month). They also expect the BoE to give a hawkish message in the minutes of the meeting (which are also released at...

    the Guardian
  • Without Reform and Cooperation with China, the International System Cannot Hold

    Timothy R. Heath, Michael J. Mazarr Security, Asia The trick is to decide where compromise is acceptable for U.S. interests and to draw clear lines around principles where it is not. The consensus is growing in Washington that the effort to integrate China into a multilateral international order has flopped. “Neither carrots nor sticks have swayed China as predicted,” Kurt Campbell and Ely Ratner argue. The West “bet that China would head towards democracy and the free market,” the Economist...

    nationalinterest.org
  • Middle income households faring best since the crash, report finds

    Swelling ranks of the UK’s pensioners joining middle earners have pushed median up, says IFS study Middle-class households in the UK have seen their incomes grow more strongly than those at the top and bottom ends of the earnings scale during the years since the financial crash, according to the Institute for Fiscal Studies. Between 2012 and 2017, the average income increased by 8% after taking into account inflation. For those in the bottom 10% of earners and those in the top 10%, incomes...

    the Guardian
  • China calls for calm as trade war fears grow – business live

    All the day’s economic and financial news, as investors worry that Donald Trump could trigger a full-blown trade war with ChinaChina central bank chief: don’t panicChina Daily: Trump’s blood lust must be fought 8.53am BST The boss of Wall Street giant Goldman Sachs has predicted that China and the US still step back from a devastating trade wars. That’s what you would do if it was a negotiating position, and you wanted to remind your counterparty just how much fire power you had to bring to the...

    the Guardian
  • Labour to propose Bank of England remit to boost productivity

    John McDonnell will call for major changes to UK’s financial system based on broad review The Bank of England could be given a mandate to boost productivity growth under a Labour government as part of opposition plans to overhaul the country’s “economic architecture”. Revealing the findings from a review of the UK financial system, the shadow chancellor, John McDonnell, will on Wednesday make the case for a fundamental transformation that could include a revamp of the Bank’s remit in order to...

    the Guardian
  • The Unconventional Plan for Dealing With China

    Hugh Harsono Security, Asia There are a variety of alternative ways that the U.S. military can influence Chinese foreign policy—ways that are not necessarily driven by the U.S. military. Military-to-military relationships continue to play an important role in foreign policy, though these roles have changed throughout time. Previously, these relationships were as simple as several military forces allying themselves to defeat a common enemy. In the present, the dynamics of soft power and hard...

    nationalinterest.org
  • Multinationals move $16bn from Australia to tax havens each year

    Landmark research finds profit-shifting is driving global reduction in headline tax rates, not competition A landmark study has found multinational corporations are shifting roughly $16bn in profits out of Australia into tax havens every year. It has also found the steady decline in corporate tax rates globally since the 1980s has not been driven by countries competing harder for productive capital and pushing corporate tax rates down, despite what politicians say. Continue reading...

    the Guardian