Economics Headlines

  • Markets rally as hopes for breakthrough in US-China trade dispute rise

    Donald Trump says talks between Washington and Beijing are progressing Financial markets around the world have rallied amid early signs of progress in the bitter trade standoff between the US and China, as hopes rise for a breakthrough in the dispute. Wall Street shook off days of volatility to post broad gains in early trading after Donald Trump said that talks between Washington and Beijing were progressing, while reports suggested that China was on the brink of redrawing its economic plans to...

    the Guardian
  • Any boost to sterling if the PM survives is not likely to last

    Brexit’s unresolved problems mean the pound will still be vulnerable even if the PM stays News that Theresa May was facing a confidence vote from her own MPs broke just before trading began in the City. But those expecting a market meltdown were swiftly proved wrong. Shares had one of their better recent days and the pound rose on the currency markets. If, as the old cliche has it, financial markets react badly to uncertainty it was hard to tell as much. The upbeat mood in the equity markets was...

    the Guardian
  • Markets rally as China prepares to cut tariffs on US cars

    Rolling coverage of the latest economic and financial news, as investors welcome signs that tensions between Beijing and Washington are thawingIntroduction: China to cut US car tariffs soon 8.15am GMT Craig Erlam of trading firm OANDA says: China has reportedly agreed to cut tariffs on US cars – from 40% to 15% - in a gesture aimed at de-escalating the trade war between the world’s two largest economies. While the details of the cut are not yet known, the move reverses the tariff hike in July...

    the Guardian
  • Schrodinger’s Immigrant: How Can Immigrants Steal Jobs if They're "Too Lazy to Work"?

    Even those who don’t favor completely unrestricted immigration and do worry about immigrants going on welfare should realize that one of the worst things the government can do is put enforcement resources into keeping immigrants from working instead of putting enforcement resources into making sure they’re not on welfare.
  • Macron thinks he's given the gilets jaunes what they want. The global economy tells a more complicated story

    Policies announced by the president were mainly about putting more money in ordinary people's pockets. But he will find it harder to take on the effects of a global slowdown
  • The labour market is thriving – but rates won't be rising just yet

    Despite high employment levels and good pay growth, Brexit uncertainty will weigh heavily on the economy for some time Employment is at record levels. Firms are struggling to hire workers. Pay growth is back to levels last seen before the financial crisis of a decade ago. So what does the Bank of England do? In normal circumstances, it would be a no-brainer. Some members of Threadneedle Street’s monetary policy committee would already be voting for an increase in borrowing costs and the City...

    the Guardian
  • How Global Organizations Warp the Globe

    I’m not a globalist.  I’m a nationalist.  Why? Because I can only live in one nation at a time.  And I’d like the leaders of that nation to do what’s best for that nation.  Because I’m living in it.  And they’re (allegedly) representing it. I live in America.  I vote in American elections.  To elect American representatives – to represent America. I know a great | Read More

  • George HW Bush was fiscally responsible – unlike Donald Trump

    The late president tried to tackle the budget deficit by doing a deal with Democrats to raise taxes When George HW Bush was laid to rest last week, the encomiums appropriately remarked on his general decency and competence, which tended to be followed by a “but”. For journalists and historians, it is “but he was only a one-term president”. He lost the 1992 election, in part because of the recession of 1990-91. For his fellow Republicans, however, it is “but he broke with the legacy of Ronald...

    the Guardian
  • IMF warns storm clouds are gathering for next financial crisis

    David Lipton says world is unprepared for downturn and Fund needs more resources The storm clouds of the next global financial crisis are gathering despite the world financial system being unprepared for the next downturn, the deputy head of the International Monetary Fund has warned. David Lipton, the first deputy managing director of the IMF, warned that “crisis prevention is incomplete” more than a decade on from the last meltdown in the global banking system. Continue reading

    the Guardian
  • Fox host: Ocasio-Cortez's 'brain is as empty as socialism itself'

    Fox News host Lisa Kennedy said Monday that she enjoys Rep.-elect Alexandria Ocasio-Cortez's (D-N.Y.) tweets and Instagram livestreams because they show "how empty headed she really is.""And her brain is as empty a

  • Pound falls to lowest in almost two years amid Brexit uncertainty

    Sterling slumps to below $1.26 after Theresa May postpones vote on her Brexit plan The pound has dropped to its lowest level for almost two years amid the growing risks to the British economy from political paralysis over Brexit and on a no-deal scenario. Theresa May’s decision to delay the parliamentary vote on her Brexit plan to avoid an embarrassing defeat for the government sent sterling tumbling by more than 1.3% against the dollar and by more than 1.1% against the euro on the foreign...

    the Guardian
  • Pound hits 18-month low against US dollar as Brexit confusion swirls – business live

    Speculation that Theresa May will abandon plans for Tuesday’s vote on her Brexit deal is rocking the financial marketsLatest: Pound rocked by reports May will pull voteSterling has hit 18-month low against the dollar todayCity traders: It’s chaos out therePolitics Live: May holds emergency cabinet meetingEarlier:UK economy hit by slowdownManufacturing output shrank by 0.9% last monthMore gloom: the trade gap has widened 1.03pm GMT Scrapping today’s vote may allow Theresa May to live another...

    the Guardian
  • The US Problem with the Internet Isn’t Access

    The Internet – when unfettered by government – is a free speech-free market Xanadu. Precisely because our government lightly regulated the Internet for its first quarter century, the Internet exploded Big Bang style.  (No, not the TV show.) Nothing in human history has grown better, bigger, stronger, faster.  Thanks entirely to private sector ingenuity and investment. Average Americans are good and decent people.  They want | Read More

  • Hedge funds make big bets against post-Brexit UK economy

    Hedge funds make million-pound bets against high street as Brexit uncertainty threatens UK economy A pair of hedge funds owned by prominent Brexit supporters have made significant bets against companies exposed to the British consumer including big high street names. Odey Asset Management, part-owned by Crispin Odey, and Marshall Wace, part-owned by Sir Paul Marshall, have declared short positions against consumer-exposed companies, including retailers, estate agents and banks, equivalent to...

    the Guardian
  • EU support for austerity opens door to far right, Corbyn says

    Failed neoliberal policies have caused serious hardship, leader tells European socialists Jeremy Corbyn has told an audience of European socialists that EU “support for austerity” had caused hardship for ordinary people and unless something changes there is a risk that “the fake populists of the far right will fill the vacuum”. Speaking at the Congress of European Socialists in Lisbon, the Labour leader added that his party respected the result of the Brexit vote and said it was the duty of the...

    the Guardian
  • How Many People Would Be Helped by a Federal Jobs Guarantee?

    A new report looks at the concept of a federal job guarantee—and who might be helped and hurt by such a program.

    Pacific Standard
  • Stock markets slump as Huawei arrest fuels trade war fears – business live

    Shares have been hit by the shock arrest of Huawei CFO Meng WanzhouLatest: European stock markets hit lowest since December 201611am: FTSE 100 down 171 points at 6750London stock market hits two-year lowFTSE 100 lower than in 1999!Huawei arrest shatters market confidenceShares have slumped in Asia - China down 2% 12.02pm GMT China expert George Magnus has tweeted about why the arrest of Huawei’s chief financial officer last weekend matters:So - in case it’s passed you by, Wangzhou Meng,...

    the Guardian
  • China to 'immediately' apply measures agreed in trade truce with US

    Commerce ministry gives few details as two sides take part in 90 days of negotiations China has said it will immediately implement measures agreed under a trade war “truce” with the US. The commerce ministry’s remarks came days after Donald Trump and his Chinese counterpart, Xi Jinping, agreed to give negotiators 90 days to resolve their trade spat. Continue reading...

    the Guardian
  • EU’s dependence on dollar to be reduced under new proposals

    Europe is being affected by the threat of US sanctions on firms that trade with Iran Plans to reduce European Union dependence on the US dollar – and so improve the bloc’s ability to run an independent foreign policy that is less exposed to US sanctions – were unveiled on Wednesday by the European commission. The proposal has grown in significance for European integrationists as firms from EU countries withdraw investments from Iran faced by the threat of punitive secondary sanctions from the...

    the Guardian
  • Chancellor Philip Hammond says Brexit betrayal would cause more damage than leaving EU

    Hammond tells MPs that Brexit will lead to slower growth, but it’s worth itLatest: Chancellor says Britain is deeply fracturedHammond: UK will be poorer after BrexitEarlier:UK service sector growth has weakenedServices PMI fell to 50.4 last month, lowest since July 2016Economists: Brexit worries are eating into growth 2.12pm GMT Carney warned food prices cld rise 10% in disorderly Brexit - Hammond claims unilaterally eliminating tariffs wouldn’t prevent as main impact wld be via lower £/ border...

    the Guardian
  • Bank of England governor slams critics over Brexit analysis

    Mark Carney has defended his warning that disorderly Brexit would cause economic harm, as Rees-Mogg is accused of ‘contemptuous’ remarksMark Carney: Our Brexit analysis isn’t an exam crisisCarney: Worst-case scenario is unlikelyJohn Mann MP: Rees-Mogg was contemptuous of parliamentEarlier:Car industry also worried about BrexitToyota: No-deal Brexit would be ‘hugely disruptive and expensive’FT: Ferries might be rationed 12.05pm GMT Q: Why did you present your Brexit analysis on the same day as...

    the Guardian
  • Trump’s trade war truce with China fragile and hurdle-strewn

    Despite stock markets surging, timeframe for reaching deal to end hostilities appears too tight As ever with financial markets, what matters is the difference from expectations. Investors did not think the G20 summit would produce an easing of trade tensions between the US and China, therefore stock markets surged after Donald Trump declared that relations had taken “a BIG leap forward”. Yet it is only sensible to believe Trump’s hyperbole when there is something on the table to inspect. All...

    the Guardian
  • Trump Flirts with “Read My Lips” Moment with China Deal

    Christian Whiton Economics, Asia Trump must stand firm against Xi on trade or else lose in 2020. After dinner with Chinese leader Xi Jinping on the sidelines of the G20 summit, President Trump announced a breakthrough on trade with Beijing. He boasted: “China will be opening up. China will be getting rid of tariffs,” adding, “It’s an incredible deal… if it happens, it goes down as one of the largest deals ever made.” But that isn’t the conclusion Beijing will reach, where the agreement will be...

    The National Interest
  • Lame Duck Soup: Sometimes You Have to Watch How the Sausage is Made

    For people not steeped in American cinematic history – Duck Soup: “The country of Freedonia is in the middle of a financial crisis and on the brink of revolution….(T)he government appoints Rufus T Firefly as its president. However, Mr Firefly shuns the pomp and pretentiousness of government; along with the prudence and rationality of it too.” I’ve again and again thought of this flick – | Read More