Economy News

Sunday, February 19, 2017

Is this the end of UK's retail boom?

Economic indicators point to a prolonged slump in consumer spending, and as prices rise real income will fall
Consumer spending in 2016 fuelled economic growth despite Brexit vote
 Consumer spending in 2016 fuelled economic growth despite Brexit vote, but 2017 will see people spend less as earnings are squeezed. Photograph: Anthony Devlin/PA
All things considered, it could hardly have gone better for Britain’s retailers in 2016. Shops and online outlets were fully braced for a big hit to activity in the period after the EU referendum but it didn’t happen. Consumers spent in the summer. They spent in the autumn and they spent at Christmas too.

Sunday, February 12, 2017

Why Donald Trump can't bully China on trade

Beijing holds trillions of dollars in US debt and any trade disruption could lead to huge price rises in the budget stores on which many Americans rely
A news stand stocking a magazine with Xi Jinping and Donald Trump on the front cover
 Women walk past a news stand displaying a Chinese news magazine fronting a photo of Chinese President Xi Jinping and US President Donald Trump. Photograph: Andy Wong/AP

Devil-may-care investors fall under spell of Trump-mania

But crazy spending plans that have led to huge rise in borrowing by junk-rated firms are likely to be blocked by Congress
Donald Trump throws a hat into the audience  that  says 'make America great again' while speaking at a rally

 As Donald Trump upsets even moderate Republicans, he sinks hopes of pushing through his controversial agenda. Photograph: Andrew Harnik/AP

Friday, February 3, 2017

Trump’s honeymoon with the stock market will soon be over

His promises have rallied the Dow Jones – but his inconsistent, erratic and destructive policies will take a toll on growth
A trader reacts as the Dow Jones closes above 20,000 for the first time at the New York Stock Exchange  last week.

 A trader reacts as the Dow Jones closes above 20,000 for the first time at the New York Stock Exchange last week. Photograph: Bryan R. Smith/AFP/Getty Images

US economy adds 227,000 jobs in January – the best figures since September

Report takes in last month of Obama’s presidency and first of Trump’s, and marks 76th consecutive month of job gains
barack obama
 The report underlines Barack Obama’s record on job creation, marking the 76th consecutive month of job gains, all but one under his tenure. Photograph: Pool/Getty Images

Sunday, January 29, 2017

Final US growth figures under Obama are a triumph – for Trump

News that pace of growth slowed in last three months of 2016 by more than Wall Street expected is a boon for new president
Barack Obama and Donald Trump composite
Donald Trump has a much easier economic inheritance than Obama. Photograph: Rex Features

Jobs for all? In the US that idea is about to be tested to destruction

Donald Trump says he’ll bring back full employment. But maybe no politician has the power to deliver this

A General Motors plant in New York
A General Motors plant in New York. Trump has promised that GM are ‘gonna build plants back in the United States’. Photograph: Joe Polimeni/AP

Thursday, January 26, 2017

Trump's wall: Mexican construction firms likely to be biggest winners

Building experts estimate barrier could cost $31bn, with most of 40,000-strong workforce from Mexican side of border
A woman holds a sign that reads: ‘Bridges yes, walls no’ during the Women’s March in Ajijic, a town in Jalisco state, Mexico.
A woman holds a sign that reads: ‘Bridges yes, walls no’ during the Women’s March in Ajijic, a town in Jalisco state, Mexico. Photograph: AFP/Getty

May and Trump talks likely to reveal cracks in 'special relationship'

British PM could struggle to negotiate good trade deal with president who has pledged to put America first
A protester holds a US flag on Westminster Bridge to protest against the inauguration of Donald Trump.
A protester holds a US flag on Westminster Bridge to protest against Donald Trump. Photograph: Leon Neal/Getty

Thursday, January 19, 2017

The Trump effect has rallied US markets – but it's based on illusion

The perception that the president-elect is a business genius and too much focus on the Dow Jones have led to excessive optimism
Has Donald Trump thrown the US markets into a flight of overoptimism?
 Has Donald Trump thrown the US markets into a flight of overoptimism? Photograph: Drew Angerer/Getty