Eat the rich! Why millennials and generation Z have turned their backs on capitalism

Nearly eight out of 10 of young Britons blame capitalism for the housing crisis and two-thirds want to live under a socialist economic system. How did that happen?

The young are hungry and the rich are on the menu. This delicacy first appeared in the 18th century, when the philosopher Jean-Jacques Rousseau supposedly declared: “When the people shall have no more to eat, they will eat the rich!” But today this phrase is all over Twitter and other social media. On TikTok, viral videos feature fresh-faced youngsters menacingly raising their forks at anyone with cars that have start buttons or fridges that have water and ice dispensers.

So should the world’s billionaires – and fridge-owners – start sleeping with one eye open? Hardly. It’s clear that millennials (those born between the early 80s and the mid-90s) and zoomers (the following generation) are not really advocating violence. But it is also clear that this is more than just another viral meme.

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Stock market correction of 5%-10% ‘likely before year end’; US inflation expectations rise – as it happened

Rolling coverage of the latest economic and financial news

Earlier:

Time to wrap up....

Here’s today’s main stories:

Related: Alibaba shares plunge as Beijing ‘seeks to break up Ant’s Alipay’

Related: Stock market pullback likely by year end, Deutsche Bank survey finds

Related: Evergrande investors face 75% hit as company edges closer to restructure

Related: UK cancels Covid vaccine deal with French firm Valneva

Related: Higher taxes could leave low-paid frontline workers £1,000 worse off

Related: EU Brexit controls are pointless bureaucracy, says M&S chairman

Related: Brexit trade barriers added £600m in costs to UK importers this year

Related: Primark hit by ‘pingdemic’ but it says supply crisis won’t lead to shortages

Related: West End theatres bank on staging a revival with big-budget productions

Related: All Sainsbury’s stores to stay shut on Boxing Day as a ‘thank you’ to staff

Related: UK to offer £265m in subsidies for renewable energy developers

European stock markets have shrugged off growth fears and talk of a stock market pullback, to end the day higher.

In London, the FTSE 100 gained 39 points or 0.55% to end at 7068 points. Royal Mail (+3%), Lloyds Banking Group (+2.8%), and hedge fund management group Pershing Square (+2.6%) led the risers.

Spain's Ibex up 1.3%. German Dax up 0.6%
The major European indices are ending the day with gains across the board:

German DAX, +0.56%
France's CAC, +0.2%
UK's FTSE 100, +0.55%
Spain's Ibex, +1.3%
Italy's FTSE MIB, +0.9%
In other markets as European/London traders look to exit:

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The Taliban are not the only threat to Afghanistan. Aid cuts could undo 20 years of progress

The most vulnerable people will bear the cost of sanctions, as services and the economy collapse

Watching Afghanistan’s unfolding trauma, I’ve thought a lot about Mumtaz Ahmed, a young teacher I met a few years ago. Her family fled Kabul during Taliban rule in the late 1990s.

Raised as a refugee in Pakistan, Ahmed had defied the odds and made it to university. Now, she was back in Afghanistan teaching maths in a rural girls’ school. “I came back because I believe in education and I love my country,” she told me. “These girls have a right to learn – without education, Afghanistan has no future.”

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Climate impact of a transatlantic flight could cost global economy $3,000

Economic cost of climate crisis has cut 37% from global GDP this century, say researchers

A return flight from the UK to New York could cost the global economy more than $3,000 (£2,170) in the long run, owing to the effects of the climate crisis, according to a report.

Researchers examined the economic cost of the climate crisis and found it would cut about 37% from global GDP this century, more than twice the drop experienced in the Great Depression.

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Brexit: food and drink exports to EU suffer ‘disastrous’ decline

First-half sales fall £2bn, says industry body, as barriers are compounded by staff shortages

Exports of food and drink to the EU have suffered a “disastrous” decline in the first half of the year because of Brexit trade barriers, with sales of beef and cheese hit hardest.

Food and Drink Federation (FDF) producers lost £2bn in sales, a dent in revenue that could not be compensated for by the increased sales in the same period to non-EU countries including China and Australia.

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Covid and the crisis of neoliberalism | Adam Tooze

The year 2020 exposed the risks and weaknesses of the market-driven global system like never before. It’s hard to avoid the sense that a turning point has been reached

If one word could sum up the experience of 2020, it would be disbelief. Between Xi Jinping’s public acknowledgment of the coronavirus outbreak on 20 January 2020, and Joe Biden’s inauguration as the 46th president of the United States precisely a year later, the world was shaken by a disease that in the space of 12 months killed more than 2.2 million people and rendered tens of millions severely ill. Today the official death tolls stands at 4.51 million. The likely figure for excess deaths is more than twice that number. The virus disrupted the daily routine of virtually everyone on the planet, stopped much of public life, closed schools, separated families, interrupted travel and upended the world economy.

To contain the fallout, government support for households, businesses and markets took on dimensions not seen outside wartime. It was not just by far the sharpest economic recession experienced since the second world war, it was qualitatively unique. Never before had there been a collective decision, however haphazard and uneven, to shut large parts of the world’s economy down. It was, as the International Monetary Fund (IMF) put it, “a crisis like no other”.

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Recovery in global trade hit by Covid outbreaks in east Asia

Decline in exports from Taiwan combines with port closures in China and Japan to hinder growth

A recovery in global trade during the summer is beginning to wane, according to some early warning signs pointing to the negative effects of widespread Covid-19 outbreaks in the manufacturing centres of east Asia.

A dramatic decline in exports from Taiwan, which makes many of the computer chips used in cars and mobile phones, has combined with temporary port closures and lockdowns in Australia, China and Japan to cut the level of global trade.

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Food, beer, toys, medical kit. Why is Britain running out of everything?

Poor pay and conditions for HGV drivers and the loss of many thousands of EU workers are plunging the UKs supply chain into crisis

Gaps on supermarket shelves. Fast food outlets pulling milkshakes and bottled drinks from their menus. Restaurants running out of chicken and closing. Empty vending machines. Online grocery orders full of substitutions. Fruit and vegetables rotting in the fields.

These are just some of the most visible signs of Britain’s deepening supply chain crisis, which has seen stocks in shops and warehouses slump to their lowest levels since the Confederation of British Industry began surveying in 1983.

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The revolt against liberalism: what’s driving Poland and Hungary’s nativist turn? – podcast

For the hardline conservatives ruling Poland and Hungary, the transition from communism to liberal democracy was a mirage. They fervently believe a more decisive break with the past is needed to achieve national liberation. By Nicholas Mulder

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Japan’s economy bounces back as Covid restrictions ease

Economic output defies expectations to expand in Q2 – but analysts warn of contraction risk

Japan’s economy recovered strongly in the second quarter to join the turnaround seen across G7 countries as the easing of lockdown restrictions sent consumers rushing to the shops.

Beating the expectations of City analysts, the world’s third largest economy also capitalised on global trade’s return to health with a surge in exports.

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Economic recovery from Covid ‘running out of steam’ – OECD

Data collected from 38 member countries says UK among the major economies now in the slow lane

The world’s major economies have seen their rapid recovery after easing Covid restrictions begin to run out of steam in the past month as a resurgence in the virus depressed consumer spending, according to the Organisation for Economic Cooperation and Development.

There are signs that the recovery in the US and Japan is losing momentum, the OECD said, while parts of Europe and China have slowed as consumers remain reluctant to eat out, visit attractions and shop as they did before the pandemic.

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Failure to help poor countries fight Covid ‘could cost global economy $4.5tn’, says IMF

Fund calls on rich nations to help halt spread of infectious variants through countries with low vaccination rates

The world economy risks losing $4.5tn (£3.3tn) from highly infectious variants of Covid-19 spreading through poor countries where vaccination rates are lower, the International Monetary Fund has warned.

Calling on rich countries to take urgent action to share at least 1bn doses with developing nations, or risk severe economic consequences, the Washington-based fund said the gap between rich and poor economies had widened during the pandemic and risked worsening further next year.

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Guns, gangs and ‘bad aid’: Haiti’s crisis reaches full throttle

Incessant foreign meddling and corrupt elites have ensured life for Haitians remains mired in violence and poverty. President Moïse’s assassination marks an escalating catastrophe

The Haitian political activist Marie Antoinette Duclair appears to have been unaware that two men on a motorbike were following her car through the badly lit streets of Port-au-Prince.

Her passenger on the night of 29 June was a journalist, Diego Charles. They had been attending a meeting, and she was now, at 11 o’clock at night, dropping him at his home in the Christ-Roi area of Haiti’s capital.

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UK food worker shortages push prices up and risk Christmas turkey supplies

Dearth of delivery drivers, abattoir staff and fruit pickers caused by Covid and Brexit are fuelling wage rises with 5% hike in prices forecast

Food prices could rise by about 5% by the autumn – and turkeys and pigs in blankets could be in short supply this Christmas – as shortages of delivery drivers, abattoir staff and other workers drive up pay and other costs.

Industry insiders say that pay for lorry drivers and other supply chain workers, including abbatoir workers, plus vegetable and fruit pickers and packers have all risen because of difficulties in finding sufficient staff.

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Data, not arms, the key driver in emerging US-China cold war | Robert Reich

Cybersecurity comes down to which side has access to more information about the other and can utilize it best

This week, shares in China’s giant ride-hailing app Didi crashed by more than 20%. A few days before, Didi had raised $4.4bn in a massive IPO in New York – the biggest initial public offering by a Chinese company since Alibaba’s debut in 2014.

The proximate cause of Didi’s crash was an announcement by China’s Cyberspace Administration that it suspected Didi of illegally collecting and using personal information. Pending an investigation, it had ordered Didi to stop registering new users and removed Didi’s app from China’s app stores.

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Delta variant fears send shares down sharply in London and Europe

Investors worry resurgence of Covid-19 cases will slow economic growth and stall global recovery

Fears that the fast-spreading Delta variant of Covid-19 will hurt the global recovery sent stocks sliding on Thursday, as investors worried that economic growth could be slowing.

Shares fell sharply in London and across other European exchanges, after losses in Asia-Pacific markets, on concerns that the economic rebound from the shock of the pandemic may have peaked, and on signs of a slowdown in China.

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‘Poverty divides us’: gap between rich and poor poses threat to China

Xi Jinping himself has warned China’s wealth gap is not only economic but political and could threaten party’s legitimacy

When Wang Zhenyu moved out of his small village in central Henan province to the coastal city of Dalian at 18, he was astonished. “It was like a culture shock for me, even though it was just a big city in my country, not a foreign land.” A few years later when he was enrolled in Peking University as a graduate student, he found much fewer students in the country’s top university coming from a similar background to his.

Growing up in a small village of 2,000 farmers, many of Wang’s childhood friends dropped out of school after finishing their nine years of compulsory education. Now with a decent academic job, Wang begins to experience “reverse culture shock” every time he goes back to his village for the annual lunar new year.

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Forget GDP, ‘vulnerability index best gauges aid’ to small islands

Commonwealth research says UVI is better measure of small island states’ aid needs, especially on climate

Small island nations on the climate crisis frontlines have been overlooked in overseas aid, according to a new index.

Urging a move away from the current benchmark of using gross domestic product (GDP) to measure aid allocation, researchers from the Commonwealth secretariat and the Foundation for Studies and Research on International Development (Ferdi), a French thinktank, have developed the universal vulnerability index (UVI) as an alternative. GDP, they claim, fails to reflect the realities nations face, particularly on climate.

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UK Covid recovery at risk as furlough scheme phased out, say economists

Business leaders also warn of renewed threat to jobs and growth as Delta variant drives up infections

Britain’s economic recovery from Covid-19 is coming under pressure amid worker shortages and lengthier pandemic restrictions, as the Delta variant of coronavirus drives up infection rates.

As the government begins to wind down the furlough scheme on Thursday – despite delaying its roadmap out of lockdown by four weeks until 19 July – the Guardian’s monthly snapshot of economic developments suggests the pace of recovery has plateaued.

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Catalonia: threat to impose massive fines on ex-minister prompts outcry

Dozens of Nobel laureates sign open letter condemning treatment of economist Andreu Mas-Colell

Threats of massive fines against the economist and former Catalan finance minister Andreu Mas-Colell for his alleged role in Catalonia’s failed independence bid in 2017 have prompted international condemnation.

Mas-Colell, 76, who served as finance minister from 2010-16, is among 40 officials, including the former Catalan presidents Artur Mas and Carles Puigdemont, accused by a tribunal of illegally using €4.8m of public money between 2011 and 2017 to further the cause of independence.

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