Recipe for inflation: how Brexit and Covid made tinned tomatoes a lot dearer

Combine the pandemic with rising raw material costs, stir in a labour shortage, a twist of Brexit, add a pinch of poor weather and voila …

Tinned tomatoes are a taken-for-granted store cupboard staple, relied upon by Britons to whip up home cooked favourites such as spaghetti bolognese. But the price could soon make you take notice, amid warnings of higher shopping bills, set against a backdrop of soaring global food prices.

From the packaging to the transportation and the energy used in manufacturing, nearly all aspects of the production of this popular ingredient now cost more. The crushed tomatoes alone are 30% dearer than a year ago, at €0.48 per kilo. The same pressures are driving the prices of many foods higher, meaning Britons will probably face bigger bills for groceries or meals out this autumn.

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Half of Zimbabweans fell into extreme poverty during Covid

Poor families cannot afford healthcare and schooling but good harvests offer some hope, World Bank finds

The number of Zimbabweans in extreme poverty has reached 7.9 million as the pandemic has delivered another economic shock to the country.

According to the World Bank’s economic and social update report, almost half of Zimbabwe’s population fell into extreme poverty between 2011 and last year, with children bearing the brunt of the misery.

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Number of EU citizens seeking work in UK falls 36% since Brexit, study shows

Figures from the jobs website Indeed expose the impact on employers as they struggle to recruit staff

The number of EU citizens searching for work in Britain has fallen by more than a third since Brexit, according to a study that exposes the impact on UK employers as they struggle to recruit staff.

Figures from the jobs website Indeed show searches by EU-based jobseekers for work in the UK were down by 36% in May from average levels in 2019. Low-paid jobs in hospitality, the care sector and warehouses recorded the biggest declines at 41%.

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China rushes through law to counter US and EU sanctions

Foreigners could be placed on an anti-sanctions list and denied entry into China or expelled from the country

China has passed a law to counter foreign sanctions in response to US and EU pressure over trade, technology, Hong Kong and Xinjiang.

Individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list and may be denied entry into China or be expelled from the country. Their assets within China may be seized or frozen and they could be restricted from doing business there.

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Global economy set for fastest recovery for more than 80 years

Slow Covid-19 vaccine progress in low-income countries will widen divisions between rich and poor nations

The global economy is set for the fastest recovery from recession for more than 80 years, but poor nations are at risk of falling further behind wealthy countries amid slow progress with the Covid-19 vaccine, the World Bank has said.

In its half-yearly outlook report, the Washington-based institution said the world economy was forecast to grow at 5.6% this year, in a sharp upgrade from previous estimates it made in January for growth of 4.1%.

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Why cryptocurrencies may remain merely a bit on the side

Wise Bank of England heads are pondering the case for a state-run digital currency this week. But do we really need one?

When Google announced that bitcoin traders would be allowed to buy advertising space on its pages from August, central banks were alerted to the next likely surge in publicity for cryptocurrencies.

The increasing activity around digital currencies has not gone unnoticed at the Bank of England, and on 7 June Threadneedle Street’s brightest will publish a consultation document, setting out how a publicly operated electronic coinage system – one that would rival bitcoin – might work.

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Education for girls and vaccines can save Africa from disaster | Phillip Inman

Parts of the continent potentially face a decade of crisis. These two measures are more important than any other in avoiding it

There are so many good causes in the world it is often difficult to know where aid money should go. As leaders line up to attend the G7 summit in Cornwall, the most effective destinations for aid money have become clearer – a global vaccination programme and improving girls’ education.

This is especially true in sub-Saharan Africa, where so much can go wrong over the next 10 years – a population explosion, massive biodiversity loss, desertification, famine and mass migration to mention just a few – that unless we focus our efforts on vaccines and girls’ education, whatever is done to alleviate poverty or tackle the climate emergency will be threatened or even sabotaged in almost every other region of the world.

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Research findings that are probably wrong cited far more than robust ones, study finds

Academics suspect papers with grabby conclusions are waved through more easily by reviewers

Scientific research findings that are probably wrong gain far more attention than robust results, according to academics who suspect that the bar for publication may be lower for papers with grabbier conclusions.

Studies in top science, psychology and economics journals that fail to hold up when others repeat them are cited, on average, more than 100 times as often in follow-up papers than work that stands the test of time.

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UK ‘faces labour shortage’ as Covid and Brexit fuel exodus of overseas workers

Experts say recovery at risk amid sharp fall in EU workers and dwindling interest in UK jobs from abroad

Britain’s employers are struggling to hire staff as lockdown lifts amid an exodus of overseas workers caused by the Covid pandemic and Brexit, industry figures reveal.

According to the Chartered Institute of Personnel and Development (CIPD) and the recruitment firm Adecco, employers plan to hire at the fastest rate in eight years, led by the reopening of the hospitality and retail sectors as pandemic restrictions are relaxed in England and Wales on Monday.

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UK dairy firms try to count the cost of churn in post-Brexit trade

Country Milk’s trade with the EU has nosedived with the dairy industry particularly badly affected by new customs rules

A small error in the paperwork – a box ticked by mistake – and the tanker of butter oil was held at French customs for five days, with veterinary authorities at the border threatening to destroy it. The debacle nearly cost the tanker’s exporter, dairy company County Milk, a six-figure sum. After fraught negotiations, the cargo was eventually repatriated.

“You don’t need too many of those to be destroyed and you are in dire straits,” says Phil Langslow, trading director at County Milk, the UK’s largest privately owned dairy ingredients business.

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Biden attempts to consign trickle-down economics to the dustbin of history

Analysis: why the president wants to build the US economy from the middle and bottom, not top down

Cut taxes on the rich. Unleash a wave of entrepreneurship. Growth will pick up and more jobs will be created. Everybody benefits. That, in essence, is trickle down – a theory of economics that Joe Biden wants to consign to the dustbin of history.

The US president was a young politician when the idea that cutting taxes on the well-off would be good for the poor first came into vogue in the 1970s. Now he has used his first address to a joint session of Congress to call on the US’s top 1% to pay for his $1.8tn (£1.3tn) American families plan – higher spending in areas such as education, childcare and infrastructure.

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Ireland will resist global corporate tax rate, says finance minister

Paschal Donohoe says Dublin will not accept reforms that affect its ability to undercut its rivals

Ireland’s finance minister has signalled the country will resist attempts to rebalance the global tax system if they affect Dublin’s ability to undercut its rivals.

Under new tax proposals led by the US, Ireland could lose 20% of its tax revenues, according to Paschal Donohoe.

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FTSE 100 closes above 7,000 for first time since Covid crash

Shares rise by more than 30 points as China reports record economic growth

The FTSE 100 has closed above 7,000 for the first time since the Covid-19 pandemic triggered a collapse in global markets last year, driven by rising hopes for the world economy after record growth in China.

The index of leading UK company shares ended the day up 36 points on Friday, or 0.5%, at 7,019, the highest level since late February 2020 when the first wave of Covid-19 sent shock waves through financial markets around the world.

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Gordon Brown calls for G7 to act on Covid vaccine ‘apartheid’

Former prime minister says group should commit to global vaccine drive and slams UK’s foreign aid cut

Preventing poor countries suffering from vaccine “apartheid” will require the G7 group of rich nations to commit $30bn (£22bn) a year to a global immunisation drive, Gordon Brown has said.

The former Labour prime minister said the UK should use June’s G7 summit in Cornwall to rekindle the moral purpose of the Make Poverty History campaign of 2005, paying for its share of the new fund by reversing the government’s “misguided” cut to the foreign aid budget.

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Aid agencies can be harmful, says Somaliland tycoon

Ismail Ahmed, a refugee turned multimillionaire, says his country has had to battle ‘negative PR’

Aid agencies are hindering development and undermining efforts to attract investment in Somaliland, according to a former World Bank and UN official turned entrepreneur.

Ismail Ahmed, founder of the money-transfer company WorldRemit, claims Somaliland, his birthplace, has had to battle “negative PR” from aid agencies exaggerating their role to protect their interests. Somaliland declared itself a sovereign state independent of Somalia in 1991, but it is not recognised internationally.

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G20 takes step towards global minimum corporate tax rate

Meetings of finance ministers follow change in US stance, with consensus growing on tackling tax avoidance

G20 finance ministers are exploring a global minimum tax on corporate profits, amid growing international consensus on tackling avoidance after the pandemic.

The virtual meetings between the group of 20 major industrial nations come after the US made the case for an international base rate this week, in a move by the Biden administration to end US resistance to international tax reforms.

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Biden unveils ‘once-in-a generation’ $2tn infrastructure investment plan

American Jobs Plan would rebuild roads, highways and bridges; confront the climate crisis and curb wealth inequality

Joe Biden on Wednesday unveiled what he called a “once-in-a-generation” investment in American infrastructure, promising a nation still struggling to overcome the coronavirus pandemic that his $2tn plan would create the “strongest, most resilient, innovative economy in the world”.

Speaking at a carpenters’ training center outside of Pittsburgh, where he launched his campaign two years ago, Biden returned as president to elaborate on his campaign pledge to “rebuild the backbone of America”.

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A year of Covid crisis: a glimmer of economic hope at the end of the tunnel

Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage

When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.

As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.

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Osinbajo defies expectations as Nigeria’s vice-president

Analysis: Buhari’s deputy wants to create jobs, feed pupils and cut red tape. Is he too high-profile for his critics?

The role of vice-president is one that John Adams, the first person in the US to hold the position, called “the most insignificant office that ever the invention of man contrived”.

Nigeria’s Patience Jonathan captured the situation in her sarcastic response to a journalist who asked about her husband, Goodluck Jonathan, when he was vice-president. She said: “He is in his office reading newspapers.”

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Regulators around the world monitor collapse of US hedge fund

Liquidation of Bill Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets

Financial regulators across the world are monitoring the collapse of the New York-based billionaire Bill Hwang’s personal hedge fund.

The sudden liquidation of Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets that has left some of the world’s biggest investment banks nursing billions of dollars of losses.

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