Economy News

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

Monday, January 16, 2017

Trump is a conservative – but that won't stop him sending deficits soaring

US leaders from Reagan to Obama have used borrowing to fund spending, and the president-elect is likely to be little different
Donald Trump plans to boost US spending on infrastructure and the military.

 Donald Trump plans to boost US spending on infrastructure and the military. Photograph: Paco Anselmi/PA

IMF says Trump's protectionism is among risks to world economy

Popular hostility towards trade in US and Europe, inequality and Chinese slowdown also threaten stability, says fund

Donald Trump’s policies could result in the dollar rising, leading to trade disputes, said the IMF.
 Donald Trump’s policies could result in the dollar rising, leading to trade disputes, said the IMF. Photograph: Evan Vucci/AP.
The global economy faces a multitude of risks in 2017, ranging from rising protectionism spearheaded by Donald Trump to a severe slowdown in China, the International Monetary Fund has warned.

Friday, January 13, 2017

Bleak trend of low, part-time wages in UK is revealed

Survey shows link between low hours and wages increased sharply in past 20 years, with one in five low-paid men now working part-time
A worker retrieves goods from shelves in a warehouse
 The report notes the rise of part-time work among men on low hourly wages has been a consistent trend over the past two decades. Photograph: Peter Macdiarmid/Getty Images

For a better parallel with Donald Trump, try Enoch Powell

Both are anti-immigration and pro-Russia. Without media support the British firebrand became an outcast. With Twitter and Fox, Trump became president
A black and white shot of Enoch Powell delivering aspeech

 Enoch Powell, a skilled orator, pictured speaking in 1970. Photograph: Popperfoto/Getty Images

ILO warns of rise in social unrest and migration as inequality widens

UN agency records rising discontent in all regions and calls on policymakers to tackle unemployment and inequality urgently
A heavily armed riot policeman squirts pepper spray into a woman protester's face
 Public servants protest against austerity in Rio de Janeiro state, Brazil Photograph: Yasuyoshi Chiba/AFP/Getty Images

Wednesday, January 4, 2017

UK construction industry enjoys fast growth in new orders

Report follows strong manufacturing survey, painting better-than-expected economic picture after Brexit vote
Builder works on a house

 Housebuilding was the main driver behind construction growth. Photograph: Peter Byrne/PA

UK shoppers are still happy to borrow – but danger may lie ahead

Shoppers are still pulling out the plastic, but borrowing may become less choice and more necessity as budgets are squeezed
Britons enjoyed their Christmas shopping – but will their debt catch up with them?
 Britons enjoyed their Christmas shopping – but will their debt catch up with them? Photograph: Jack Taylor/Getty Images

UK credit binge approaching levels not seen since 2008 crash

Debt charities issue warning to government after unsecured consumer credit grew at fastest rate in more than 11 years
Credit cards


 Credit card debts hit a record high in the run-up to Christmas. Photograph: Andrew Matthews/PA
A credit boom that is close to levels not seen since the 2008 financial crash should set alarm bells ringing in Theresa May’s government, debt charities have warned.

Economists dispute claim that Brexit could create 400,000 jobs

Change Britain’s claim about benefits of post-Brexit free trade deals are based on ‘entirely fictional statistics’, one expert says
Containers on a ship



 Change Britain cited reports that the United States, India, the South American Mercosur group, China, Canada and South Korea have all expressed an interest in trade deals. Photograph: Andrew Matthews/PA
Economists have disputed claims from a pro-Brexit campaign group that leaving the customs union and new free trade deals could create 400,000 jobs, arguing it takes no account of the risks to exports.