Editor Brian Harrod Provides Comprehensive up-to-date news coverage, with aggregated news from sources all over the world from the Roundup Newswires Network
Covid has tanked the gains he made in the economy and any new stimulus could be too late
It all looked so simple for Donald Trump as he took the stage at the World Economic Forum in Davos in January this year. At the start of an election year, the annual gathering of the global business elite was an opportunity to launch his campaign.
It was one Trump eagerly seized. The next 30 minutes was one long boast, detailing how a US economy that had allegedly been on its knees under Barack Obama had been transformed under his stewardship.
World economic outlook says 2020 impact is less than thought but there will be deep scars
The International Monetary Fund has scaled back its estimate of the hit to the global economy from Covid-19 this year but warned that the final bill for the pandemic would total $28tn (£21.5tn) in lost output.
Gita Gopinath, the IMF’s economic counsellor, described coronavirus as the worst crisis since the Great Depression, and said the pandemic would leave deep and enduring scars caused by job losses, weaker investment and children being deprived of education.
It’s a myth that Republicans handle the economy better – US recessions almost always occur under the GOP
Joe Biden has consistently held a wide polling lead over US President Donald Trump ahead of November’s election. But, despite Trump’s botched response to the Covid-19 pandemic – a failure that has left the economy far weaker than it otherwise would have been – he has maintained a marginal edge on the question of which candidate would be better for the US economy. Thanks to Trump, a country with just 4% of the world’s population now accounts for more than 20% of total Covid-19 deaths – an utterly shameful outcome, given America’s advanced (albeit expensive) healthcare system.
The presumption that Republicans are better than Democrats at economic stewardship is a longstanding myth that must be debunked. In our 1997 book, Political Cycles and the Macroeconomy, the late (and great) Alberto Alesina and I showed that Democratic administrations tend to preside over faster growth, lower unemployment and stronger stock markets than Republican presidents do.
A panel of three federal judges blocked the Trump administration on Thursday from excluding undocumented immigrants from the census totals used to determine how many seats in Congress each state gets.
Trump acted unlawfully in July when he ordered the Commerce Department to produce data that would allow him to exclude undocumented immigrants from the count, the panel said. Federal law is clear that only a single data source - the census count of total population - can be used to apportion the 435 seats in the US House among states, the judges wrote. The decennial census does not ask about citizenship status and by requesting a second set of data outside of the decennial census, Trump ran afoul of the law.
Unprecedented wildfires and rushed evacuations in Oregon have wreaked havoc on the state’s incarcerated population, with thousands now packed into a single overcrowded prison that was already a major Covid-19 hotspot.
A destructive and rapidly spreading fire in Marion county prompted the state to evacuate three prisons on Tuesday, transferring 1,450 people to the Oregon state penitentiary (OSP) in Salem. Evacuees are sleeping on the floor and on emergency beds throughout OSP, including in indoor recreational areas, program rooms and other facilities not typically used for housing.
Mark Haefele, chief investment officer, UBS Global Wealth Management, said:
While we expect the Fed to shy away from more radical easing measures, such as explicit controls on government bond yields, we believe Powell will likely outline other dovish measures. These could include a move toward average inflation targeting, giving the central bank more leeway to allow inflation to overshoot the 2% target while keeping rates pegged close to zero.
Maybe the age of the independent, activist central bank head is also coming to an end. Fiscal policy is more powerful and monetary policy needs to work in harmony with it. Monetary policy is being asked to do things (like tackle economic inequality) that it really isn’t suited to. But, here we are, waiting for Jay Powell to turn up at Grafton’s Saloon. He’s already done everything he can, he’s almost out of bullets and he may even have already won the fight, but we have placed our faith in him and desperately want fresh encouragement.
In the short term, probably not, but with China weaponising the yuan stern challenges lie ahead
The recent sharp depreciation of the US dollar has led to concerns that it may lose its role as the main global reserve currency. After all, in addition to the Federal Reserve’s aggressive monetary easing – which threatens to debase the world’s key fiat currency even further – gold prices and inflation expectations have also been rising.
But, to paraphrase Mark Twain, reports of the dollar’s early demise are greatly exaggerated. The greenback’s recent weakness is driven by shorter-term cyclical factors. In the long run, the situation is more complicated: the dollar has both strengths and weaknesses that may or may not undermine its global position over time.
S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds
US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.
The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.
Drop in quarterly gross domestic product comes as 1.43m people file for unemployment benefits, a second week of increases, amid Covid-19 pandemic
The US economy shrank by an annual rate of 32.9% between April and June, its sharpest contraction since the second world war, government figures revealed on Thursday, as more signs emerged of the coronavirus pandemic’s heavy toll on the country’s economy.
The record-setting quarterly fall in economic growth compared to the same time last year came as another 1.43 million Americans filed for unemployment benefits last week, a second week of rises after a four-month decline.
Donald Trump has declared the US economy is 'roaring back' after news of a fall in unemployment nationwide. The results come as states across the country have been gradually lifting Covid-19 restrictions. While 4.8m jobs were added in June, parts of the country have also experienced record numbers of new coronavirus cases
Report identifies gap between market optimism and depressed state of economies
The global stock market rally represents a gamble by investors that central banks will ignore the risks of a buildup in debt and continue to provide support at the current record levels, the International Monetary Fund has warned.
In an update to its half-yearly global financial stability report, the IMF said central banks had been pivotal in the recovery of share prices from their Covid-19 trough but there was now a gap between the optimism of financial markets and the depressed state of economies.
Millions of ordinary Americans are facing rising and unaffordable bills for running water, and risk being disconnected or losing their homes if they cannot pay, a landmark Guardian investigation has found.
Exclusive analysis of 12 US cities shows the combinedprice of water and sewage increased by an average of 80% between 2010 and 2018, with more than two-fifths of residents in some cities living in neighbourhoods with unaffordable bills.
Dow Jones loses more than 1,800 points while S&P down 5% after US coronavirus infections hit 2m
Stock markets tumbled in the US and Europe on Thursday amid growing fears over the long-term economic impact of the coronavirus pandemic.
The sell off started after the US labor department announced another 1.5 million people had filed for unemployment benefits and the number of coronavirus infections passed 2m even as states across the US continued to relax their quarantine measures.
National Bureau of Economic Research says economic growth in the US peaked in February and has since entered its first downturn since 2007 to 2009
The United States is officially in a recession, ending the longest economic expansion in US history, the committee that calls downturns announced on Monday.
The National Bureau of Economic Research (NBER) said that economic growth in the US peaked in February and has since entered its first downturn since 2007 to 2009.
Young’s pub chain intends to open all of its 276 sites by the 3 August, and is hopeful the business can “bounce back” once its pubs are allowed to reopen, but expects trading to be “materially below average” for the rest of the year.
Another interesting detail from the SMMT data: Tesla’s Model 3 was the most popular car during May.
After Donald Trump said on Friday that he believes places of worship should be deemed as essential services, Minnesota’s Democratic governor, Tim Walz, issued an executive order addressing the issue. Places of worship in the state will now be able to open at 25% of capacity. Individuals or households in the buildings must maintain six feet distance.
Walz said he still encouraged citizens to worship remotely. “I am under no illusion whatsoever: Every move we make that loosens up increases the risk,” Walz said.
Jerome Powell: pace of downturn ‘without modern precedent’
Lowest-paid Americans hit hardest by coronavirus pandemic
More evidence of how the coronavirus pandemic is widening income inequality has emerged after the Federal Reserve announced 40% of households earning less than $40,000 included someone who has lost a job since February.
Shares have soared on the world’s stock markets after investors shrugged off a deep slump in the US economy and pinned their hopes on a possible breakthrough in treatment for Covid-19.
Mike Pence’s office has dubiously argued the vice president does not need to wear a mask because he is regularly tested for coronavirus.
The vice president faced questions about his lack of mask usage earlier this month after a photo circulated of a mask-less Pence greeting Colorado governor Jared Polis, who was wearing a mask in the picture.
Vice President Mike Pence was criticized for ignoring mask guidelines when visiting the Mayo Clinic facilities in Minnesota today.
Footage of Pence’s visit showed the vice president not covering his face as he met with the clinic’s employees and at least one patient.
PENCE flouts Mayo Clinic policy that everyone on campus wear a mask, even as he meets with staff and a patient. pic.twitter.com/kfo64KQDhU
Mayo Clinic had informed @VP of the masking policy prior to his arrival today.
Measure heads to Donald Trump’s desk after passing House by vote of 388-5, as lawmakers meet for first time in weeks
The US House of Representatives overwhelmingly approved a $484bn coronavirus relief bill on Thursday, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3tn.
The measure passed the Democratic-led House by a vote of 388-5, with one member voting present. House members were meeting for the first time in weeks because of the coronavirus pandemic.