Category Archives: Economics

Coronavirus: fourth Diamond Princess passenger dies as Japan closes some schools – live news

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Concerns mount that the spread of Covid-19 cannot be stopped as stock markets fall amid investor fears. Follow latest news

Italy may need to call on the European Union to offer leeway on its budget targets as it struggles with the impact of the coronavirus outbreak, a senior official said.

Deputy economy minister, Laura Castelli, made the comments a day after prime minister Giuseppe Conte warned that the fallout from the outbreak, which has concentrated in the economic powerhouses of northern Italy, would be “very strong”.

If you want to share any thoughts or news tips with me about the coronavirus then please email: sarah.marsh@theguardian.com or tweet me @sloumarsh. My direct messages are open. Thanks

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Coronavirus: two people die in Iran as cruise ship Britons face Wirral quarantine – latest updates

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Deaths in mainland China pass 2,000 and Foreign Office tells Britons to stay on the Diamond Princess cruise ship

Inspectors in protective suits have been going door to door in Wuhan in an effort to find every infected person, the Associated Press reports.

Wednesday marked the final day of a campaign to root out anyone with symptoms whom authorities may have missed so far.

Britons returning home from the Diamond Princess cruise ship that has had more than 600 cases of coronavirus will be quarantined at the same NHS facility that housed people flown back to the UK from Wuhan.

The Department of Health said: “We can confirm that an accommodation block on the Arrowe Park NHS site will be used to isolate those returning from the Diamond Princess cruise ship in Japan. They will be kept in this location for the 14-day quarantine period, with around-the-clock support from medical staff at all times.”

Related: Foreign Office tells Britons not to leave cruise ship struck by coronavirus

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Coronavirus: Japan to trial HIV antiretroviral drugs on patients – latest news

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UK prepares evacuation flight for cruise ship passengers. Follow the latest news

The Italian luxury fashion house Prada has postponed a fashion show due to take place in Japan in May.

In a statement, the company said:

Due to the current uncertainty related to the spread of the novel coronavirus, the Prada Resort fashion show originally scheduled for May 21 in Japan will be postponed.

Repatriating passengers from the coronavirus-stricken cruise ship in Japan is not without risks, a medical expert has said.

Paul Hunter, professor in Medicine at the University of East Anglia, said:

Considerable care needs to be made to ensure that the passengers do not transmit infection between themselves or to cabin crew during the flight home and once back on home soil they do not act as a focus for the spread of the disease into their home countries – any returning passengers may be put in quarantine on their return.

It is well known that certain infections such as influenza and norovirus can spread rapidly on board cruise ships. Cruise ships take passengers and crew from all over the world, often passengers are relatively elderly, they spend most of their time on board indoors mixing with others.

The most likely [infection] route is direct person-to-person transmission when people are close to an infected person, but with currently publicly available information it is not possible to rule out other issues at this stage.

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Japan’s economy heading for recession, and Germany wobbles

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International trade slump and coronavirus outbreak combine to weaken consumer demand

Japan’s economy is heading for a recession this year after figures showed the world’s third largest economy slumped by an annual rate of 6.3% during the last quarter of 2019.

Germany, the world’s fourth largest economy, is also expected to stumble as the coronavirus epidemic and a slump in trade with China combine with weak consumer demand to drag growth lower.

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German economy stagnates as eurozone growth hits seven-year low – business live

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Rolling coverage of the latest economic and financial news, including the latest eurozone growth figures

Andrew Kenningham of Capital Economics has told clients:

“We think the economy will continue to flirt with recession in the first half of this year.”

It’s hard to put too much gloss on a stagnating economy, but the German government has tried to strike an optimistic-ish tone this morning.

Berlin’s economy ministry says Germany’s economy is going through a weak phase, but it’s encouraged that business sentiment has improved.

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EU clamps down on free ports over crime and terrorism links

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Moves comes as Britain launches consultation on creation of up to 10 of the zones

Brussels is clamping down on 82 free ports or free zones after identifying that their special tariff and duty status has aided the financing of terrorism, money laundering and organised crime.

A set of new rules was introduced by the European commission just weeks before the launch on Monday of a UK government consultation on the creation of up to 10 free ports in post-Brexit Britain.

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Will coronavirus make markets take a ‘black swan’ dive?

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Impact of Chinese outbreak has already rippled out well beyond world’s No 2 economy

The impact of coronavirus on the global economy is growing and spreading daily. What started as a medical emergency in the Chinese city of Wuhan has led to planes being grounded, cruise ships being quarantined, theme parks being shut and car plants being mothballed.

TV footage of deserted streets and empty shops tell their own story: China’s economy, which was already slowing, is going to suffer a major hit as the authorities seek to stop the virus from spreading.

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Coronavirus live updates: all arrivals to Hong Kong from mainland China face ‘compulsory quarantine’ – latest news

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Thousands on board Diamond Princess cruise ship in offshore quarantine in Japan after 10 people test positive, as China death toll passes 490

A hotel worker in the northern Italian city of Verona has tested negative for coronavirus.

The woman, who was isolated after coming down with a fever, is a member of staff at the same hotel where a Chinese couple being treated for the virus in Rome stayed for one night.

Here’s a report from Josh Taylor, a Guardian reporter based in Melbourne, that the Australian government is considering sending its citizens evacuated from Wuhan to isolated mining camps if Christmas Island reaches capacity for people being quarantined.

The home affairs minister, Peter Dutton, admitted there is the possibility that Christmas Island could reach capacity if the outbreak continues to spread. He said one option would be for people to share rooms, or potentially even open up other locations away from the rest of the Australian population.

Related: Coronavirus: 14th Australian case confirmed as Dutton says people could be sent to mining camps

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Trump blasts ‘prophets of doom’ in attack on climate activism

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Comment came as Greta Thunberg demanded immediate action in Davos

Donald Trump told the world’s business leaders to stop listening to “prophets of doom” as he used a keynote speech at the World Economic Forum to attack the teenage activist Greta Thunberg over her climate crisis warnings.

The US president hailed America’s growth record and compared campaigners against global heating with those who feared a population explosion in the 1960s and mass starvation in the 1970s.

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UN report: half a billion people struggle to find adequate paid work

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Study also shows global unemployment due to rise for the first time in a decade

Nearly half a billion people around the world are struggling to find adequate paid work, trapping individuals in poverty and fuelling heightened levels of inequality, according to a UN report.

In a study published as world leaders fly into the Swiss ski resort of Davos to voice concerns over inequality and the climate crisis, the UN’s International Labour Organization (ILO) said more than 473 million people around the world lacked the employment opportunities to meet their needs.

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IMF boss says global economy risks return of Great Depression

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Kristalina Georgieva compares today with “roaring 1920s” and criticises UK wealth gap

The head of the International Monetary Fund has warned that the global economy risks a return of the Great Depression, driven by inequality and financial sector instability.

Speaking at the Peterson Institute of International Economics in Washington, Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way.

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Trump signs China trade pact and boasts of ‘the biggest deal ever seen’

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President signs first phase of new agreement with China, hours after Democrats named team that will prosecute him in Senate

Donald Trump has signed the first phase of a new trade agreement with China after two years of tension between the two superpowers that have rattled economies around the world.

Related: Trump vaunts his China trade pact – but some say it’s too little, too late

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Ballooning debt forces poor countries to cut public spending

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Congo-Brazzaville and Chad among hardest hit as campaigners warn spiralling repayments could trigger disaster

Poorer countries are cutting public spending in response to a “growing debt crisis”, campaigners have warned.

Debt in some countries has trebled according to new figures that calculate debt reimbursements, and their impact on government expenditure, in 60 countries.

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Why Iran crisis is unlikely to hit US consumers hard at the gas pumps

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Rumors of Middle East war used to inevitably lead to soaring gas prices but fracking revolution has changed the market landscape

For many older Americans the thought of war in the Middle East will trigger memories of soaring gas prices and long lines at the pumps. But as US relations with Iran sink to a new low there is, as yet, no sign of panic.

Related: By killing Qassem Suleimani, Trump has achieved the impossible: uniting Iran | Dina Esfandiary

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Bernie Sanders’ economic adviser says Australia’s bushfires are a climate change ‘wake-up call’

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Stephanie Kelton says Australia could ‘absolutely’ benefit from a program similar to the Green New Deal

Australia’s unprecedented bushfires are a wake-up call to the world about the importance of tackling climate change, Bernie Sanders’ economic adviser said, and the country should consider implementing a green new deal to transition to a low carbon economy.

Stephanie Kelton said Australia could benefit from an ambitious program of spending, similar to the one proposed by Sanders and others that aims to transform the US economy and help keep global heating below 1.5C.

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Money pumped into China’s economy in attempt to fight slowdown

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People’s Bank of China allows commercial banks to hold less capital in reserve

China’s central bank has acted to pump more liquidity into the country’s economy in an attempt to prevent growth slowing in 2020.

The People’s Bank of China is allowing commercial banks to hold less capital in reserve, freeing up about 800bn yuan (£87bn) in new funds for loans. It will cut China’s banks’ reserve requirement ratio (RRR) by 50 basis points, to 12.5%, from 6 January.

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Donald Trump says he will sign first phase of US-China trade deal

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Prospect of agreement lifts stock markets but experts question impact on long-running tensions

Donald Trump has said he will sign the first phase of a long-awaited trade deal with China on 15 January, in a move that de-escalates the tariff war between the world’s two biggest economies.

In a tweet on Tuesday, the US president said “high-level representatives of China” would attend an official ceremony at the White House, adding he would also be travelling to Beijing for talks on the second phase of the deal.

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Hong Kong recession to continue as protests hit economy – business live

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Rolling coverage of the latest economic and financial news

The pick-up in UK mortgage approvals in November is a “significant surprise”, says Howard Archer of the EY Item Club.

He suspects that some home owners may have been keen to move before the general election, as a hung parliament could have created more economic uncertainty in 2020.

Those gains in Hong Kong and China today have lifted Asian stock markets to their highest levels in 18 months today.

Global stock markets have gained another $700bn this week in thin trading on santa rally. All equities now worth $87.1tn, just $200bn shy of a fresh life-time high and equal to 100% of global GDP so stocks have entered bubble territory. pic.twitter.com/JgXmKPDWCN

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Easing trade tensions fuel pre-Christmas shares rally

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Donald Trump promises that a US-China trade pact will be signed ‘very shortly’

A pre-Christmas rally fuelled by hopes of waning trade tensions have pushed share prices to a fresh high and on course for their biggest rise in a decade.

Donald Trump’s promise that a US-China trade pact would be signed “very shortly” sent the MSCI gauge of stock markets around the world to new record levels.

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US reaches ‘deal in principle’ with China to end trade war

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  • White House expected to announce accord later on Thursday
  • US offered to halt new tariffs and up to 50% cuts on existing ones

The White House has reached a “deal in principle” with Beijing to resolve the 17-month US-China trade war, according to a source briefed on the trade talks.

The White House was expected to make an announcement later on Thursday, the source said.

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