Category Archives: Business

World Bank calls for greater debt relief for poorer countries in wake of Covid-19

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President David Maplass says inequality has worsened as depression looms over poorer nations

The head of the World Bank has called for a more ambitious debt relief plan for poor countries after warning that the Covid-19 recession is turning into a depression in the most challenged parts of the globe.

In an interview with the Guardian, David Malpass raised the prospect of the first systematic write-off of debts since the 2005 Gleneagles agreement as he said fresh Bank figures due out next month would show an extra 100 million people had been pushed into poverty by the crisis.

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Witness K is in the dock but institutions vital to Australia’s democracy are on trial | Ian Cunliffe

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Some people seem to be above the law. Those people do not include the whistleblower and his lawyer, Bernard Collaery

Timor-Leste only achieved independence in 2002. It was Asia’s poorest country and desperately needed revenue. Revenue from massive gas resources in the Timor Sea was its big hope. But it needed to negotiate a treaty with Australia on their carve-up. Australia ruthlessly exploited that fact: delays from the Australian side in negotiating a treaty for the carve-up of those resources, and repeated threats of more delays, were a constant theme of the negotiations. In November 2002 the former Australian foreign minister Alexander Downer told Timor-Leste’s prime minister, Mari Alkatiri: “We don’t have to exploit the resources. They can stay there for 20, 40, 50 years.” In late 2003 Timor-Leste requested monthly discussions. Australia claimed it could only afford two rounds a year. Poor Timor-Leste offered to fund rich Australia’s expenses. Australia didn’t accept.

Related: Witness K and the 'outrageous' spy scandal that failed to shame Australia

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Debt in developing countries has doubled in less than a decade

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Jubilee Debt Campaign reveals sharp rise in number of countries in distress since 2018

Developing nation debt has more than doubled in the past decade and left more than 50 countries facing a repayment crisis, according to a campaign group.

Data from the Jubilee Debt Campaign shows that even without taking full account of the impact of the coronavirus pandemic, there has been a sharp jump in the number of poor countries in debt distress since 2018.

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Watchdog to investigate US Postal Service changes ahead of election – live

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Donald Trump has spent the early part of today retweeting stories that promote the (unproven) theory that mail-in voting is subject to widescale fraud.

The president retweeted allegations of voting fraud in Paterson, New Jersey, along with the comment: “The Democrats know the 2020 Election will be a fraudulent mess. Will maybe never know who won!”

The Democrats know the 2020 Election will be a fraudulent mess. Will maybe never know who won! https://t.co/tEWKJ5NcUj

Good morning. We start this morning with news that the United States Postal Service’s inspector general will investigate claims that recent changes could affect this November’s presidential election.

Donald Trump has long issued baseless claims that mail-in voting is ripe for fraud and there are real concerns that cuts to the service could weaken the agency and mail-in ballots may not arrive on time to be counted.

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Tale of two Cities: FTSE 100 rises despite economic collapse

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Surge in shares contrasts with Covid-related downturn and growing unemployment

The economic collapse in Britain during the second quarter of 2020 was the most brutal on record. Unemployment is forecast by the Bank of England to soar to 2.5m by Christmas. The Brexit cliff edge approaches. Yet in the City, the FTSE 100 has been on the up.

Never has the disconnect between financial trading and economic fundamentals appeared so extreme. What explains surging asset prices (the FTSE jumped 2% on the same day it was revealed the economy had slumped by 20%) when the outlook for many workers is so grim?

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Officers ‘tried to force asylum seeker to airport’ despite court ruling

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Man who was granted injunction due to risk of suicide says he sustained an injury during attempted removal

An asylum seeker who crossed the Channel to the UK on a small boat claims he was forced out of his cell in a detention centre by officers who wanted to put him on a flight even though a judge had halted his removal hours earlier, the Guardian has learned.

He was restrained and sustained an injury during the attempted removal in the early hours of Wednesday morning by officers unaware of the high court decision.

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Seven top oil firms downgrade assets by $87bn in nine months

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Thinktank says changes to forecasts reflect accelerated shift away from fossil fuels

The world’s largest listed oil companies have wiped almost $90bn from the value of their oil and gas assets in the last nine months as the coronavirus pandemic accelerates a global shift away from fossil fuels.

In the last three financial quarters, seven of the largest oil firms have slashed their forecasts for future oil market prices, triggering a wave of downgrades to the value of their oil and gas projects totalling $87bn.

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China retail sales fall fuels concern for global recovery from Covid-19

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Retail sales dropped 1.1% in July while industrial production remains subdued

Fears over the strength of China’s economic recovery from the coronavirus pandemic have been raised after retail sales slumped in July and industrial production remained subdued.

Fuelling concerns for the world economy, retail sales in China dropped in July by 1.1% compared with the same month a year ago, missing predictions for a small increase in consumer spending.

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DfID scheme accused of ‘putting UK aid in pockets of wealthy companies’

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£6.85m programme places emphasis on benefit to businesses rather than protecting workers in the developing world, say critics

A newly announced aid programme that promises to help workers in the developing world supplying goods to British high street chains like Marks & Spencer, Primark and Morrisons has been condemned for using taxpayers’ money to “pick up the bill” for improving workforce conditions.

The £6.85m scheme, announced on Thursday by international development secretary Anne-Marie Trevelyan, is being promoted explicitly as benefitting British consumers to ensure they “can continue to buy affordable, high quality goods from around the world”.

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Apple and Google remove Fortnite video game from app stores

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Move over payment guideline violations prompts maker Epic Games to take legal action

Apple and Google have removed the enormously popular video game Fortnite from their app stores for violating their in-app payment guidelines, prompting the maker, Epic Games, to take legal action challenging the tech giants’ iron grip over the industry.

Its removal from Apple’s App Store and Google’s Play Store came after Fortnite circumvented the companies’ in-app payment system and hefty fees, encouraging users to pay the gaming company directly.

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Forget doom-laden headlines, the dollar has not gone into terminal decline | Barry Eichengreen

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Too much is being read into the greenback’s recent weakening against the euro

The dollar is in freefall! The global greenback is doomed! screamed recent headlines. Actually, such sensational headlines are “too sensational”, to echo that noted authority on currencies, Miss Prism, in Oscar Wilde’s The Importance of Being Earnest.

The dollar’s fall in July to a two-year low against the euro was the immediate impetus for these stories. In fact, the dollar’s recent slide is one in a series of readily explicable fluctuations. When the Covid-19 pandemic went global in March, the dollar strengthened on the back of safe-haven flows into US Treasuries, as it does at the start of every crisis. By May, the Federal Reserve, acting as global lender of last resort, had accommodated this mad scramble for dollars by pouring buckets of liquidity into financial markets and the greenback gave back its early gains.

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Office pods may be the answer to working safely post-Covid-19

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Entrepreneur Xu Weiping is risking a fortune to build 2,000 3-metre square workspaces in east London

Welcome to cube city. Xu Weiping, a Chinese multimillionaire, has a vision for the future of office work in the post-Covid-19 pandemic world: thousands of office pods where each person works in their own self-contained 3m x 3m cube.

Xu reckons the coronavirus pandemic will have such a fundamental impact on the way people work that he is converting 20 newly constructed office buildings in east London into 2,000 of the individual cube offices.

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European banks urged to stop funding oil trade in Amazon

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Indigenous people in headwaters region say financing harms communities and ecosystems

Indigenous people living at the headwaters of the Amazon have called on European banks to stop financing oil development in the region, as it poses a threat to them and damages a fragile ecosystem, after a new report found $10bn in previously undisclosed funding for oil in the region.

The headwaters of the Amazon in Ecuador and Peru are home to more than 500,000 indigenous people, including some who choose to live in voluntary isolation. The area, covering about 30m hectares (74m acres), hosts a diverse rainforest ecosystem, but it is threatened by the expansion of oil drilling.

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Covid-19: UK economy plunges into deepest recession since records began

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GDP falls 20.4% – the worst of any G7 nation in the three months to June

Britain has entered the deepest recession since records began as official figures on Wednesday showed the economy shrank by more than any other major nation during the coronavirus outbreak in the three months to June.

The Office for National Statistics (ONS) said gross domestic product (GDP), the broadest measure of economic prosperity, fell in the second quarter by 20.4% compared with the previous three months – the biggest quarterly decline since comparable records began in 1955.

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Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

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S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

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Microsoft’s TikTok deal: bargain of the decade or a $50bn blunder?

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Jury is out on whether video-sharing site could make Microsoft a social media giant

As the clock ticks on Microsoft’s fast-track talks to buy TikTok the jury is out on whether it marks a unique opportunity to become a global social media giant overnight, or a $50bn (£38bn) geopolitically fuelled business blunder.

Donald Trump’s trade war with China has forced ByteDance, the privately owned Beijing-based parent of the video-sharing site TikTok, to pursue a sale of its US business after the president signed an executive order last week that could shut it down on 15 September.

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Fighting for breath: how the medical oxygen industry is failing African hospitals

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Sub-Saharan hospitals are dependent on costly oxygen from multinational suppliers. As Covid-19 spreads, doctors are being forced to make terrible choices

As Covid-19 spreads throughout Africa, a potentially deadly lack of oxygen is leaving doctors unable to offer essential treatment.

Some experts put considerable blame on two multinational gas suppliers that dominate the market for oxygen cylinders across much of the continent, saying that their high prices and systems make the treatment unaffordable.

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House for sale in London, good location, overlooks park, a bargain at £185m

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Developer seeks to cash out of investment in John Nash-designed terrace with views of Regent’s Park

Developers have stuck an asking price of £185m on a house overlooking Regent’s Park in central London in what would be the UK’s second most-expensive home purchase.

The property firm Zenprop is targeting foreign billionaires as potential buyers of 1-18 York Terrace East as it seeks to cash out of a 2016 investment.

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UK to plunge into deepest slump on record with worst GDP drop of G7

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Official measure to be declared this week as coronavirus lockdown shrinks GDP by 21% in second quarter

Britain’s economy will be officially declared in recession this week for the first time since the 2008 financial crisis, as the coronavirus outbreak plunges the country into the deepest slump on record.

Figures from the Office for National Statistics on Wednesday are expected to show that gross domestic product (GDP), the broadest measure of economic prosperity, fell in the three months to June by 21%.

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Is this the end for ‘king coal’ in Britain?

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As the black stuff burnt in the UK plummets to a level not seen since the early steam age, we trace its long, deep history and the problems left in its wake

Britain achieved an unlikely status as a power provider last year. Its annual consumption of coal plunged to the lowest level in 250 years. According to figures released last week, a mere 8 million tonnes were incinerated in UK factories and power plants. That is roughly the same amount that was burned nationally in 1769, when James Watt was patenting his modified steam engine.

That invention helped to spark the Industrial Revolution and triggered a massive rise in annual coal use in Britain, which soared to well over 200 million tonnes by the mid-20th century. Now levels have plummeted back to their original pre-revolution state. King coal – once the undisputed ruler of British industry – has finally been dethroned.

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