Category Archives: Economics

Australia’s inflation rate rose 1.2% in September quarter boosted by higher fuel prices

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Quarterly CPI was higher than economists’ expectations and will increase speculation that the Reserve Bank may again raise interest rates

Australia’s inflation rate quickened in the September quarter, boosted by higher petrol prices, adding to pressure on the Reserve Bank to hike interest rates again.

The headline consumer price index rose 1.2% in July-September, up from 0.8% in the June quarter, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the quarterly rate to come in 1.1%.

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The RBA has left its key interest unchanged at 4.1% for the past four months. Ahead of today’s inflation numbers, markets were pricing in about a one-in-three chance that the central bank would lift the cash rate to 4.35% at the 7 November meeting.

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Young Europeans more likely to quit driving and have fewer children to save planet

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Exclusive: Poll shows young people willing to make big lifestyle changes but baulk at smaller gestures

They are willing to have smaller families, stop using cars and – albeit in smaller numbers – go vegan for the planet, but abandoning single-use plastics and growing a few more plants could be a step too far.

Across Europe, according to a seven-country survey, it seems young people are more willing than older generations to make big lifestyle changes that would help combat the climate crisis – but are less convinced by smaller gestures.

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Climate activists force Fed chair Jerome Powell off stage in New York

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On Thursday protesters chanted: ‘Off fossil finance!’ and held a banner reading: ‘Fed Is Burning: Money, Futures, Planet’

The Federal Reserve chair, Jerome Powell, was escorted out of an event Thursday afternoon after a group of climate protesters briefly took the stage before he was due to give a speech. He took the stage after a 15-minute delay.

At the Economic Club of New York, protesters stormed the stage holding a banner that read “Fed Is Burning: Money, Futures, Planet” and chanting “Off fossil finance!” Powell, who was on stage, briefly left the event before returning to deliver his speech as planned. Security officials cleared protesters from the room.

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Tories have no room for tax cuts despite £52bn a year stealth rise, says IFS

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UK stuck between weak economic growth and risk of persistently high inflation, says thinktank

The government has no room for unfunded pre-election tax cuts despite having pushed through a “colossal” £52bn a year stealth raid on household incomes on Rishi Sunak’s watch, the Institute for Fiscal Studies has warned.

Britain’s foremost economics thinktank said the dire state of the public finances meant that attention-grabbing tax cuts risked stoking inflation, leading to higher Bank of England interest rates and a lengthy recession.

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Africa’s ‘optimist-in-chief’ on the continent’s renaissance: ‘Don’t just believe me, believe the data’

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In an exclusive interview, Akinwumi Adesina, head of the African Development Bank, says the outlook is good for a continent with the workers of the future and the best investment opportunities

Africa holds the future workforce for the ageing economies of the west, according to one of the continent’s leading financial figures, who also said it was time to ditch the myths around corruption and risk.

In an exclusive interview before this weekend’s World Bank meetings in Morocco, Akinwumi Adesina said there was a resurgence of belief in Africa’s economic prospects and attacked negative stereotyping, adding that there was “every reason to be optimistic”.

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‘Securonomics’: five key business messages from Labour conference

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With company chiefs in attendance and an endorsement from Mark Carney, shadow chancellor sought to demonstrate economic competence

At every turn in Labour’s annual conference in Liverpool, there are signs of big business on manoeuvres. Exhibition stands for Google, Ineos and Specsavers; slick videos for Amazon and Uber, fringe events sponsored by Deliveroo and Goldman Sachs, while even the parliamentary lounge – a retreat for MPs from the throng of 16,000 delegates – was sponsored by Lloyds Banking Group.

Labour was keen to demonstrate economic credibility by basking in the presence of company bosses. For business leaders, it was a chance to check out a potential government in waiting, with many commenting on the marked contrast with the Conservative conference in Manchester.

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Keir Starmer says Labour will tackle obstacles holding back housebuilding as protester interrupts conference speech – as it happened

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Labour leader says party has ‘plan to get Britain building again’ after security breach where protester threw glitter on him at start of speech

Labour has published fresh details of how the community policy guarantee (see 9.43am) will work.

On community policing

On Starmer, told that after Reeves’ reassurance over economy, his speech designed to paint a ‘picture of hope’ & it ‘emotive rather than a big policy drop’> the word cloud on what Starmer’s about peppered with don’t know and even ‘nothing’. This his chance to hammer home values

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Rachel Reeves says Labour will get rid of ‘obstacles created by antiquated planning system’ – UK politics live

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Shadow chancellor will tell party conference that Labour wants to be the party of building and infrastructure

In normal circumstances, Labour conference would be front-page news, but this week’s event has being overshadowed by the war between Israel and Hamas. Rachel Reeves has been taking questions on this in her morning interviews and she stressed Labour’s support for Israel. In an interview with BBC Radio 4’s Today programme, asked about claims that the “occupation of Palestine” had provoked the attacks by Hamas, Reeves replied:

Gaza is not occupied by Israel.

The real cause of what is happening now is a terrorist attack. If Britain or any other country was attacked by terrorists, we would believe, and rightly so, that we have every right to defend ourselves, to get back hostages and to protect our citizens.

Speeding up the planning for critically important infrastructure by updating all national policy statements – which set out what types of projects the country needs – within the first six months of a Labour government.

Fast-tracking the planning process for priority growth areas of the economy, such as battery factories, laboratories, and 5G infrastructure.

If we want to spur investment, restore economic security, and revive growth. Then we must get Britain building again.

The Tories would have you believe we can’t build anything anymore. In fact, the single biggest obstacle to building infrastructure, to investment and to growth in this country is the Conservative party itself.

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Labour’s Wes Streeting interviewed at Labour party conference – UK politics live

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Shadow health secretary questioned by Guardian editor-in-chief, Katharine Viner

Q: You oppose the Rwanda policy because you don’t think it will work. If the supreme court rules it is legal, and deportations start and it is seen to be working, would you still reverse it.

Yes, says Starmer. He says it is the wrong policy. It is very expensive, and it only affect only a small number of people. And the policy does not deal with the problem at source.

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IMF clings to a hopeful agenda as crisis follows crisis

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At the fund’s annual meeting this week in Morocco, ambitions for climate and debt relief may be overwhelmed by events – again

Last week’s turmoil in the global bond markets will be playing on the minds of finance ministers and central bank governors when they gather in Marrakech this week for the annual meetings of the International Monetary Fund and the World Bank.

After the triple shocks of the Covid pandemic, the war in Ukraine and the surge in inflation, the mood may be less febrile than it was a year ago, but few if any of those travelling to Morocco – which suffered a devastating earthquake last month – would dare say that the crisis era is over. Most will be wondering what might go wrong next.

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Supply shortages and mortgage rate rises push UK rents to highest point ever

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Average rental property receives three times more enquiries from prospective tenants than in 2019

Private home rents in Great Britain have increased to their highest point on record after shortages in supply and mortgage rate rises combined to push the cost up by 10% over the past 12 months.

The average rent for new properties being put on the market now stands at a record £1,278 per calendar month outside London in the July to September period, according to Rightmove.

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Bond market sell-off sends UK long-term borrowing cost to 25-year high

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Rate tops level last seen after Liz Truss mini-budget as fears of global inflation and US political instability spook markets

Britain’s long-term cost of borrowing has hit its highest level since 1998, as political instability in the US and fears of sustained high levels of inflation triggered a sell-off in global bond markets.

The yield, or interest rate, on 30-year UK government bonds hit 5.115% early on Wednesday, according to the financial data provider Refinitiv.

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Greggs keeps prices on hold as sales leap and it opens new shops

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Britain’s biggest bakery chain says cost inflation is easing, although staff costs are rising

Greggs, Britain’s biggest bakery chain, said it had no plans to raise its prices before Christmas after its cost inflation eased, as sales soared over the last three months.

The retailer raised its prices in June, when some products went up by 5-10p.

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Tory swing voters switch to Labour after Sunak’s green retreat, poll finds

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Survey shows nearly 90% of 2019 Conservative voters say green industry is vital to UK’s economic growth

Almost nine in 10 voters who intend to switch their support from Conservative to Labour candidates in the next general election believe that “green growth” is important for the future of Britain’s economy, according to a poll.

Carried out by pollsters Opinium, the survey found that 82% of all respondents backed the growth of Britain’s green industry to boost the economy, in the same week that the prime minister announced a series of U-turns on the government’s green commitments in an attempt to create a dividing line with Labour before the election.

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UK economy makes stronger recovery from pandemic than first thought

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Revisions to figures show stronger performance than Germany and France but momentum starts to stall

The UK economy made a faster recovery from the Covid pandemic than previously estimated, according to revisions to official figures revealing a stronger performance than Germany and France.

In a boost for Rishi Sunak before the Conservative party conference in Manchester beginning this weekend, revised figures from the Office for National Statistics (ONS) showed gross domestic product was 1.8% above pre-pandemic levels at the end of the second quarter this year.

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Investigation launched into killings and evictions on World Bank tourism project

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Tanzania government blamed for violence against villagers in national park, while thousands more people face losing their homes

The World Bank is investigating allegations of killings, rape and forced evictions made by villagers living near the site of a proposed tourism project it is funding in Tanzania.

The bank has been accused of “enabling” alleged violence by the Tanzanian government to make way for a $150m (£123m) project ministers say will protect the environment and attract more tourists to Ruaha national park.

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Great British slowdown has hamstrung our economy – thinktank

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Country needs successful firms to grow and struggling ones to shrink, says Resolution Foundation

The UK needs more businesses to fail, or at least shrink, to solve the economy’s long-running productivity crisis, a study has argued.

The country’s lack of “economic dynamism”, whereby weaker firms or lower productivity sectors shrink, and more productive ones grow, has caused GDP to be 4% lower between 2008 and 2019 than it would otherwise have been, according to a paper published on Monday by the Resolution Foundation.

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UK manufacturers cut hiring plans amid ‘sharp slowdown’, survey finds

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Firms preparing for difficult year as ‘potent cocktail’ of difficulties takes hold, says industry lobby group

UK manufacturers are cutting their recruitment plans after being hit by a slowdown in orders as a downturn looms, a new survey shows.

Britain’s manufacturers are “battening down the hatches” amid a sharp drop in activity, according to the latest quarterly data from Make UK, which represents manufacturers, and the business advisory firm BDO.

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Key ‘Bidenomics’ architect calls for spending ‘race to the top’ on green tech

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Biden adviser Heather Boushey urges UK and Europe to increase climate friendly investment to reboot growth

Governments around the world must drastically increase public investment in green technologies to combat global heating and drive sustainable economic growth, a top adviser to President Joe Biden has said.

Heather Boushey, a member of the White House council of economic advisers, said countries including the UK needed to ramp up green investment to reboot economic growth, boost energy security, and protect against future inflation shocks.

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Sluggish eurozone economies will not welcome ECB’s interest rate rise

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Weak consumer spending as, people – especially in Germany, the EU’s largest economy – put more into savings

Interest rates went up again across the eurozone on Thursday – probably for the last time during this cycle of hikes that has become a familiar story in the single currency bloc, as it has in the UK and US.

The European Central Bank (ECB) raised its main deposit rate by a quarter of one per cent to 4% – the highest level in the euro’s history.

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