Category Archives: Economics

‘A fatal blow’: Italian producers fear effects of Trump’s ‘war against pasta’

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US president’s threat to impose 92% tariffs targeting major manufacturers put family-run firms in the firing line as well

“It’s a real pity,” laments Antonio Rummo of Donald Trump’s latest target in his ever-evolving tariff war: Italian pasta. Rummo is the sixth-generation grandson of the founder of Pasta Rummo, who opened a wheat mill in Benevento in southern Italy in 1846, using the family’s three horses to lug grain from the surrounding Campania region and Puglia to produce fresh pasta.

“Demand for premium pasta in the US has been growing,” says Rummo. Appreciated by consumers for a traditional processing method that guarantees it will cook to al dente perfection, sales of Pasta Rummo have been thriving.

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Lifetime of earnings not enough for UK workers to join wealthiest 10%, report says

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Research finds it would take average worker saving all their earnings for 52 years to match wealth of richest 10th of society

It would take the average earner in the UK 52 years’ worth of earnings to become as wealthy as the richest 10%, according to new research by the Resolution Foundation.

In a new report, the influential thinktank analyses the Office for National Statistics’ latest wealth and assets survey, which covers the Covid pandemic period of 2020-22.

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Gold prices scale record highs as investors seek safe haven

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US government shutdown and uncertainty about the economy has caused a surge in value of precious metal

Gold futures prices topped $4,000 per ounce for the first time on Tuesday as investors continue to seek safe havens for their money, with the US government essentially shut down and widespread uncertainty around the economy.

As of 9.10am ET, gold futures traded at $4,003 in New York. The going price for New York spot gold rose to $3,960.60 per troy ounce – the standard for measuring precious metals.

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Ineos to cut a fifth of Hull jobs, blaming ‘dirt-cheap’ imports from China

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Company says more roles will be at risk unless UK government supports tariffs to protect industry

Ineos, the chemicals company owned by the billionaire Sir Jim Ratcliffe, is to cut a fifth of jobs at its East Yorkshire plant, blaming “sky high” energy costs and “dirt-cheap” imports from China.

The company founded in 1998 by Ratcliffe, who co-owns Manchester United FC, said it would cut 60 jobs at the Acetyls site in Hull, which makes petrochemical products such as acetic acid. It said more roles would be at risk across the industry unless the government stepped in.

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France is in crisis but bond markets leave other governments at risk of meltdown too

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Investors rattled by resignation of French PM but country is not alone in trying to grapple with political maths

Sébastien Lecornu’s abrupt resignation as the French prime minister on Monday after less than a month in the role marked the latest clash between France’s stretched public finances and its polarised politics.

Lecornu was the latest prime minister to try and fail to cobble together a package of spending cuts and tax rises that would pass muster in a parliament without a clear majority, and contain mounting bond market pressures.

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Tories say people denied benefits in UK can return to home countries

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Mel Stride outlines plans to slash £47bn a year from public spending, including £23bn welfare cut

Overseas nationals denied benefits under a Conservative plan to limit social security to UK citizens would have the option to return to their own countries, the shadow chancellor, Mel Stride, has said.

Before his speech to the Conservative conference on Monday, Stride set out Tory proposals to cut £47bn a year from public spending, with the biggest chunk, £23bn coming from reductions in welfare.

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Wealth tax would be deadly for French economy, says Europe’s richest man

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LVMH owner Bernard Arnault, who could take €1bn hit, says proposed 2% levy ‘aims to destroy liberal economy’

Europe’s richest man, the luxury goods magnate Bernard Arnault, has said that a wealth tax that could cost him more than €1bn (£817m) would be deadly for France’s economy.

The French founder of LVMH Moët Hennessy Louis Vuitton said in a statement to the Sunday Times that calls for a 2% wealth tax on all assets “aims to destroy the liberal economy, the only one that works for the good of all”.

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Federal Reserve cuts interest rates by a quarter point, for first time in nearly a year – as it happened

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Rates now stand at a range of 4% to 4.25% as reduction comes amid concern of political pressure on independent central bank from Trump

A reporter asked Jerome Powell about Stephen Miran’s appointment, specifically on the fact that Miran is the first Fed governor to also have a role in the executive branch while also serving on the Fed board. Miran is the chair of the Council of Economic Advisors.

“The committee remains united in pursuing our dual mandate goals,” Powell said in response. “We’re strongly committed to maintaining our independence and beyond that, I really don’t have anything to share.”

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Trump official confirmed to Fed board but court rejects Lisa Cook removal bid

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Senate votes 48-27 to confirm Stephen Miran as Fed governor but court rules Cook may remain in place

Senate Republicans voted on Monday to confirm a senior Trump official to the Federal Reserve’s board of governors as the White House raced to strengthen the US president’s control over the central bank ahead of its latest meeting.

Hours before Fed policymakers convene for their September decision on interest rates, the Senate voted 48 to 27 to confirm Stephen Miran – already chair of Donald Trump’s council of economic advisers – as a governor.

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Reeves to host bosses of UK and US financial firms as Trump visit begins

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Chancellor hosting Downing Street talks with Treasury secretary, which are aimed at securing more US investment

Rachel Reeves will host the bosses of top US and UK financial firms in Downing Street on Tuesday morning, as Donald Trump begins his official state visit.

The meeting, which will be jointly hosted by US Treasury secretary, Scott Bessent, will be attended by senior figures from BlackRock, Barclays and Blackstone, who will have roundtable talks with officials hoping to highlight economic cooperation between the two countries.

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Chinese economy slows amid Trump trade war and weaker consumer spending

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Slowing growth in factory output and retail sales prompts calls for fresh economic stimulus

China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year.

The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds.

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Europe’s summer of extreme weather caused €43bn of short-term losses, analysis finds

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Greatest damage from heat, drought and flooding done in Cyprus, Greece, Malta and Bulgaria

The violent weather that battered Europe this summer caused short-term economic losses of at least €43bn, according to an EU-wide estimate, with costs expected to rise to €126bn by 2029.

The immediate hit to the economy from a single brutal summer of heat, drought and flooding amounted to 0.26% of the EU’s economic output in 2024, according to the rapid analysis, which has not been submitted for peer review but is based on relationships between weather and economic data that were published in an academic study this month.

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EU and US officials meet as Trump says he is ready to impose further sanctions on Russia

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Europe and US consider further actions to weaken Russia after largest-ever air attack on Ukraine over the weekend

The EU’s most senior sanctions envoy is holding talks in Washington with US officials after Donald Trump said he was ready to take further action against Russia over the war in Ukraine.

David O’Sullivan, the EU sanctions envoy, is meeting US counterparts on Monday, as Europe and the US look for tougher measures to weaken Vladimir Putin’s war machine after Russia launched its largest-ever air attack on Ukraine over the weekend.

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US justice department opens criminal inquiry into Fed governor Lisa Cook

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Officials to investigate claims of mortgage fraud against Cook, who has refused to accept firing by Donald Trump

The US justice department has initiated a criminal investigation into mortgage fraud claims against Federal Reserve governor Lisa Cook as a lawsuit she filed against Donald Trump over her firing makes its way through court.

Lawyers with the justice department have issued subpoenas for the investigation, according to the Wall Street Journal, who first reported the investigation, which has since been confirmed by multiple news publications.

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Canada’s Mark Carney signals austerity measures as government shifts focus from Trump to economy

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Prime minister cautions Canadians as Ottawa moves to curb spending to balance near-record military expenditures

Mark Carney has told Canadians to prepare for austerity measures and his finance minister warned of “tough choices” in the coming months, as the government attempts to balance near-record defence spending, cuts to government programs and a trade war with the United States.

Carney, the former central banker and economist turned politician, has been meeting senior ministers before the fall budget, and hinted cuts were coming to the federal bureaucracy.

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Trump asks US supreme court to overturn trade tariffs ruling

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Move follows federal appeals court decision that sweeping ‘liberation day’ levies on imports had overstepped presidential powers

Donald Trump has asked the US supreme court to overturn a lower court decision that most of his sweeping trade tariffs were illegal.

The US president filed a petition late on Wednesday to ask for a review of last week’s federal appeals court ruling in Washington DC, which centred on his “liberation day” border taxes introduced on 2 April, which imposed levies of between 10% and 50% on most US imports, sending shock waves through global trade and markets.

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Pressure rises on Reeves as government borrowing costs hit 27-year high

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Chancellor will face more limited fiscal headroom at budget after yield on 30-year bond increases to 5.723%

Britain’s long-term borrowing costs have hit their highest level in 27 years, intensifying the pressure on the chancellor, Rachel Reeves, before the autumn budget.

The yield, or interest rate, on 30-year UK government debt hit 5.723% on Tuesday. That is its highest level since 1998, indicating that it will cost the UK more to borrow from the markets, above the previous 27-year high of 5.649% set in April.

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Pre-budget lift for Rachel Reeves as UK business confidence rises

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Despite concerns about economy, poll shows optimism about trading prospects at highest level since 2014

Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run-up to her autumn budget.

An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.

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Fed chair Powell to give high-stakes speech at Jackson Hole amid Trump attacks

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Jerome Powell – who Trump has urged to resign – will address the economic outlook at a symposium in Wyoming

For months, the Federal Reserve chair, Jerome Powell, has ignored demands from Donald Trump to cut interest rates and defied the US president’s calls to resign.

On Friday, as Trump ramps up his extraordinary attack on the central bank’s independence, Powell will set out where he thinks the world’s largest economy is headed in a closely scrutinized speech at the Jackson Hole symposium in Wyoming.

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UK metals firms threaten to sue government over tariffs on steel imports from Asia

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Companies send letter to business secretary complaining new rules were imposed with 24 hours’ notice

UK metals companies have threatened to take legal action against the government over tariffs on raw steel imports from Asia which they claim have caused a “tsunami” of problems for the industry.

Earlier this summer, the business secretary, Jonathan Reynolds, reduced the amount of raw steel from Vietnam and South Korea that can be imported tariff-free in a move designed to protect UK raw steel makers, which face competition from cheap imports.

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