Economics newsletter
Trump’s tariffs are taming China
Stockholm This week, the fate of the global economy could have been decided over a Mongolian barbecue in a Stockholm tourist trap. On Tuesday, just 50 yards from Sweden’s seat of government, Rosenbad – where the US Treasury Secretary Scott Bessent and the Chinese Vice Premier He Lifeng had been wrangling over trade negotiations –
Has the IMF changed its tune on Brexit?
Given the perilous condition of Britain’s public finances, perhaps we ought to start taking the IMF and its World Economic Outlook a little more seriously. It is not impossible to foresee Rachel Reeves or her successor having to repeat what one of her Labour predecessors, Denis Healey, had to do in 1976: and beg the
Germany isn’t happy about the EU-US trade deal
The US-EU trade deal has been given a lukewarm reception in Europe. Although the agreement between US president Donald Trump and the president of the European Commission Ursula von der Leyen is merely a framework, rather than a full-trade deal, there are already major concerns on the continent, especially in Germany – a country famously
Britain needs to embrace crypto with its own Genius Act
In proposing to sell the government’s £5 billion hoard of Bitcoin – accumulated from confiscating the proceeds of crime – Rachel Reeves has earned some keen supporters. But the Chancellor should resist the temptation. It wouldn’t be an error quite on the scale of Gordon Brown’s sale of half of Britain’s gold reserves in 1999 – that occurred
Rachel Reeves’s tax raid is to blame for rising unemployment
Unemployment has hit 4.7 per cent – its highest level for four years after the Chancellor’s taxes on business caused jobs to slump. The figures, published this morning by the Office for National Statistics (ONS), also show payroll jobs down by 178,000 in the 12 months to June and by 41,000 between May and June.
Cutting bank holidays for French workers is a bad idea
Banning the baguette, perhaps? Or making it compulsory to eat a sandwich at your desk at lunchtime? If you think hard enough, it is possible to imagine reform that would create more anger in France. Even so, prime minister Francois Bayrou’s plan to scrap two public holidays is right up there. Bayrou wants to reduce
Rising inflation shows how the Bank of England is failing
The rate of inflation climbed to 3.6 per cent in June – up from 3.4 per cent in May. That’s well above the 2 per cent target that the Bank of England consistently misses. It begs the question why the Bank’s governor, Andrew Bailey, spent the weekend talking up rate cuts, when as one former
No, Rachel Reeves: Britain doesn’t look ‘open for business’
Rachel Reeves wants Britain to become a shareholder democracy. In her annual Mansion House speech to the City’s bankers, accountants and financial advisors, she said ‘for too long, we have presented investment in too negative a light’. She’s right. These changes are unlikely to unleash the ‘big bang’ of prosperity and tax revenues the Chancellor
Bribing motorists to buy electric vehicles is an expensive mistake
At last, the government has found a use for that large pile of surplus money which has been causing it such a headache: it is going to bribe motorists with grants of up to £3,750 to buy an electric car. If that sounds familiar, it is because the previous, Conservative government had a similar scheme,
Rachel Reeves’s ‘Big Bang’ is doomed
We probably won’t see the return of shoulder pads, big hair, or yuppies swilling champagne in the bars around Liverpool Street. Even so, the Chancellor Rachel Reeves will promise a return to the go-go spirit of the 1980s in her Mansion House speech this evening, with a pledge of ‘Big Bang’ style deregulation to boost