Matthew Lynn

Matthew Lynn

Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

It’s hard to be proud of the FTSE 100

It has finally happened. In trading on Tuesday afternoon, the UK’s FTSE 100 index finally closed in on an all-time high. It hit 8,015 points, itching above the previous record closing level of 8,014 set in February 2023 – even if it was still a whisker below the intra-day trading record of 8,043, also from

The Swiss are cutting interest rates. Why can’t we?

Mortgage rates will finally start to come down again. Consumers will have a little more money in their pockets. And companies will find it cheaper to invest. Today’s cut in interest rates was a much needed boost for the economy. Oh, but hold on. That was over in Switzerland, where the central bank this morning cut

Rachel Reeves will regret promising growth

Growth will be turbo-charged, animal spirits will be unleashed, and foreign investment will flood back into Britain. Shadow chancellor Rachel Reeves is promising a Thatcher-style revival of the British economy if Labour wins power. But there’s a problem with the pitch that she will deliver in her keynote Mais lecture on the economy today: a

Cutting National Insurance won’t save the Tories

It will put more money in people’s pockets. It will improve the incentives to work. And it will put down a marker that the party does still believe taxes can occasionally be cut. The Chancellor Jeremy Hunt is not the world’s finest speech-maker, but he will probably attempt a few rhetorical flourishes when he cuts

Apple is right to steer clear of the electric car market

Apple’s much-hyped electric car appears to have been killed off before it ever hit the road. For years, the tech firm’s plan to branch out into developing an electric, semi-autonomous car have been the subject of much excitement. Codenamed Project Titan, fans speculated that Apple would turn its magic to designing a car that would

Javier Milei’s Argentine revolution seems to be working

The currency would collapse. Output would go into freefall. Unemployment would soar, and the IMF would be back in charge quicker than you could say ‘chainsaw’. When Argentina voted into power its libertarian new president Javier Milei there were predictions that his radical free market reforms would quickly plunge the country into chaos. But hold

London has France to thank for its Brexit win

The City of London would be hollowed out. Bankers would have to retrain as burger chefs. And Paris and Frankfurt would emerge as the twin centres of the European financial markets, leaving London as little more than a backwater. Of all the predictions made by some Remainers during Brexit, there was one that kept re-emerging:

Jeremy Hunt should ignore the IMF’s tax cut warning

Government borrowing is lower than had been forecast. The economy needs some form of a boost. And perhaps most of all there is an election within a few months. There are plenty of reasons why Chancellor Jeremy Hunt might want to cut taxes slightly in his spring Budget, and perhaps even once more by the

Christine Lagarde is failing again

Christine Lagarde, the president of the European Central Bank, has one of the most glittering CVs in European politics. The ex finance minister of France, and former managing director of the International Monetary Fund, earns £365,000 a year for running the show at the ECB. But is she any good? An internal poll of staff

What’s wrong with trillionaires?

Why is Oxfam so concerned about the coming possibility of the world’s first trillionaire? The charity has this week released a report with an apocalyptic warning that one is likely within the next decade. Yet surely people only get that rich by making something that people want. That should be celebrated instead of condemned.  In

The EU is paying a high price for its Brexit pettiness

It has formidable negotiating skills, at least according to its cheerleaders. It has huge economic clout. And it can impose its will on companies and rival governments. Given that we have heard so much over the last few years about the immense influence of the European Union you might have thought that a small matter like

Bitcoin’s bounce back has proved its critics wrong again

The charlatans had been exposed. Its flimsiness had been confirmed. And the bubble had finally burst. Rewind to just over a year ago, and with the collapse of the crypto exchange FTX and the arrest of its billionaire founder Sam Bankman-Fried it seemed as if the legions of skeptics of the digital currency Bitcoin had

Will Javier Milei’s ‘shock therapy’ work?

The Argentinian peso has been devalued by 50 per cent overnight. Controls on exports have been scrapped, and the country’s ministry of culture is to be closed down. The health, labour, social development and education departments are also facing the chop. Argentina’s president Javier Milei – who vowed to deliver economic ‘shock treatment’ in his

There’s a reason the market is rejecting electric cars

They are cheap to run. They rarely break down. And perhaps most of all they are far better for the environment. For the last decade we have been endlessly lectured about how electric cars are so completely superior to the petrol variety that they would quickly dominate the market. But hold on. Now that some

Is climate change really to blame for rising food costs?

Everything in the shops is getting more expensive and restaurant bills have become prohibitive. We are all aware that food price inflation is a major factor in the overall cost-of-living crisis. It might seem plausible, as claimed today, that climate change is a major factor driving this. After all, weird weather, wildfires and droughts make