Economy News

Monday, March 20, 2017

The Ronald, the Donald – and a hamstrung Hammond

Though he talked tax cuts, Ronald Reagan in fact turned on the public spending taps, to great effect at home and harm abroad. But 2017 is hardly 1981
Reagans at first Inauguration
 Ronald Reagan could pull levers to boost growth that are beyond Trump’s grasp, and that of Philip Hammond. Photograph: Corbis via Getty Images

Brexit-proof the UK economy with more R&D, say employers

New CBI campaign says economy risks being left behind unless UK research budget rises to 3% of GDP from 1.7%
A robot on display at a computer trade fair
 A robot at the CeBit computer fair in Hanover, Germany. Photograph: Fabian Bimmer/Reuters

Wednesday, March 15, 2017

US interest rate rise signals end of ultra-low borrowing costs

Will Fed’s steady march to ‘new normal’ scare away the ghosts of financial crisis?
Federal Reserve chair Janet Yellen
 Federal Reserve chair Janet Yellen hinted at two more rate rises this year. Photograph: Susan Walsh/AP

Thursday, March 9, 2017

UK economy will grow 2% this year but slow next, OBR predicts

Forecaster revises prediction for UK economy in 2017, but says growth will slow next year as inflation hits spending
High street shoppers
 Rising prices are forecast to dampen consumer spending, which helped the economy to grow more than expected in 2016. Photograph: Lauren Hurley/PA

Trump's border tax could damage the US a lot more than a wall

Republican plan aims to close trade deficit and raise revenue – but it could hurt importers and spark short-term job losses
Activists at a rally in New York against Donald Trump's border wall
 Activists at a rally in New York against Donald Trump’s border wall. A virtual tax wall could end up affecting average Americans a lot more Photograph: Mike Segar/Reuters

Friday, March 3, 2017

Donald Trump has made rookie mistakes – he must change his approach

The new president can’t change the rules of the game singlehandedly. He must learn to work effectively within the system
Donald Trump signs an executive
 Avoidable mistakes: Donald Trump signs an executive order to impose a four-month travel ban on refugees entering the US and a 90-day hold on travellers from Syria, Iran and five other Muslim-majority countries. Photograph: Carlos Barria/Reuters

Sunday, February 26, 2017

Trump's housing policies will hit the poor - and middle America, too

Existing eviction problems are going to get worse as US housing becomes more unaffordable and the country loses construction skills
US president Donald Trump’s housing policies will hit not just the poorest people, but middle America too

 US president Donald Trump’s housing policies will hit not just the poorest people, but middle America too
Photograph: Michael Reynolds/EPA

Just as neoliberalism is finally on its knees, so too is the left

Progressive parties have overwhelmingly failed to develop alternative policies. Listening to a modern progressive politician is like taking a tepid bath
Nigel Farage and​ Donald​ Trump

 This era is throwing up popular firebrand rightwingers, such as Nigel Farage and Donald Trump. Photograph: Gerald Herbert/AP

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