Economy

It’s fitting that Donald Trump’s inauguration day coincides with the first day of the World Economic Forum’s infamous Davos conference. The new and the old world orders are, in theory, competing for attention. But this is not a competition. It’s not even close. This year’s conference theme is ‘Collaboration for the Intelligent Age’: an idea that means little to nothing if the world’s largest economy – and leader in AI development – is not on board. And ‘collaboration’ is hardly a word that suits the lead-up to inauguration day, as the 47th President of the United States has been gearing up for the return to an ‘America First’ policy, which

The great virtue of markets is that they are coldly actuarial and politically indifferent. Win them over and you can get a lot done. Just ask Javier Milei, President of Argentina. Milei has defied his left-wing critics and the distrust engendered by a lengthy history of defaults to slash public spending, rebuild reserves and tackle inflation. Fall out of favour and it is a different story. Bond markets are no longer buying Labour Chancellor Rachel Reeves’ proclamations that she is ‘going for growth’ with her plans for a tax-financed state expansion and debt-financed investment splurge which she laid out in her first Budget. Markets fear her plans will add to

Drill, baby drill. The mood on Net Zero is changing in the Scottish parliament where a majority of MSPs have signed a petition calling for a reversal on the ban on new oil and gas licenses in the North Sea. This sea change in attitudes to the black stuff, if you’ll excuse the pun, could portend a dramatic reversal of the Scottish government’s opposition to fossil fuels in SNP leader John Swinney’s long-delayed energy strategy. The “presumption against offshore drilling” has been the centrepiece of SNP energy policy since Cop26 in 2021, when Nicola Sturgeon posed for selfies with Greta Thunberg. Sturgeon is gone, of course – and her clean

Perhaps you could gather a group of traffic wardens and ask them how to build a racetrack. Or get the leaders of the Salvation Army over to suggest some cool ideas for a cocktail bar. Think up any improbable brainstorming sessions, and it will still be hard to imagine anything more awkward than the gathering of regulators Chancellor Rachel Reeves summoned to Downing Street today to give her some ideas on growth. After all, that is her job, not theirs.  Just the concept of frog-marching regulators into the Chancellor’s office and demanding ‘growth ideas’ is ridiculous It hardly sounds like fun. The chief executives of such august sounding bodies as

Rachel Reeves has found brief respite this morning, with the Office for National Statistics confirming that inflation dipped to 2.5 per cent in the 12 months to December, down from 2.6 per cent the month before. This is a smaller rise than had been expected (the consensus was 2.6 per cent) and roughly in line with the Bank of England’s forecast from November, which had predicted a 2.4 per cent increase. It’s welcome news for a Chancellor who is under pressure. Core inflation slowed too, from 3.5 per cent in the year to November, to 3.2 per cent in December. This competes for the best news in the update, as core

Rachel Reeves did her best to keep today’s China visit statement on topic. The Chancellor wanted to talk about ‘cooperation’, ‘competing where our interests differ,’ her efforts to break down market barriers and the £600 million she secured in investment. But other MPs had other ideas.  ‘I know the Chancellor has been away,’ said the Shadow Chancellor Mel Stride. ‘So let me update her on the mess she left behind.’ So began the battle between the Chancellor – to stay on topic – and her opposition to bring up the long list of economic woes that have come to the forefront this week: not just the substantial rise in borrowing

Rachel Reeves, who is now fighting for her political life, was instrumental in helping Labour secure a landslide majority at the general election. If you don’t believe that then you have probably forgotten that her predecessor as shadow chancellor was Anneliese Dodds. All the while that the wild-haired former university lecturer Dodds was in charge of Labour’s economic policy the party lagged well behind on perceived competence on this vital issue. But when the sleek, suited and booted Reeves took over that all changed. City and business sentiment gravitated towards Starmer’s party and the Tories were unable to terrify the electorate any longer about the prospect of Labour being in