Author Nathan Robinson makes the case for socialism.
Despite harsh language criticizing what Beijing calls U.S. interference in China’s domestic affairs, and a second summoning of the U.S. ambassador in a week, China’s leadership still wants a deal to help alleviate pressure on its fast-weakening economy.
Increasing wages increases consumption. Because 22% of consumption is imported in Germany – and because increasing wages doesn’t increase exports: if anything, the opposite – Germans having more money in their pockets will lead to them buying more foreign goods, reducing the current account surplus.
This won’t be easy to execute. There is a deep bipartisan consensus in Germany to maintain the status quo.
The version of the “unitary executive” put forth by Mr. Trump, the Justice Department and the shareholders would open the door for a president to fire for any reason — even personal reasons unrelated to the public interest or even for no reason at all — any head of an administrative agency, including the heads of “independent agencies” like the Consumer Financial Protection Bureau as well as the Federal Reserve, the Federal Trade Commission and the Nuclear Regulatory Commission. (These agency heads are nominated by the president and confirmed by the Senate.)
Top oil exporter Saudi Arabia has restored capacity to 11.3 million barrels per day after an attack on its processing facilities this month, sources told Reuters last week, although Saudi Aramco has yet to confirm it is fully back online.
The Federal Reserve makes its interest rate decision and also releases new versions of its dot plot and economic projections and Chairman Jerome Powell will address the media afterwards. Follow along as MarketWatch’s Rex Nutting, William Watts, and Jeffrey Bartash live-blog the action and watch the video of the press conference.
First, we learnt that the economy overall expanded by 0.3 per cent in July, significantly faster than the 0.1 per cent expected, and better than most of our main rivals. Next, we found out that the trade deficit narrowed slightly as imports fell. Finally, we learned that employment was at record highs and that wages were still growing at record rates.
A leaked shortlist for the next Governor of the Bank of England made its way from the highest levels of the Treasury to the pages of The Times last Saturday, and has now been followed up by an orchestrated letter signed by Remain supporting MPs. The letter is a not-so-subtle attempt to confirm the leak by making the Civil Service’s recommendation list public and therefore making it politically harder for the Chancellor to appoint a Brexiteer to the role.
How many times does this need to be restated? Germany desperately needs to change its economic model, now more so than ever as its own economy, that of the European Union, and the world as a whole, again teeter on the brink of recession.
Most of all, it needs to make itself more reliant on internal, domestic demand, and less on exports.
The New Zealand dollar rose after Reserve Bank governor Adrian Orr painted a rosy picture of the local economy and described the 50 basis point cut in the official cash rate earlier this month as „a pre-emptive double cut“ to reduce the need to cut more later.
Signalling the possibility of more interest-rate cuts, Federal Reserve Chairman Jerome Powell said the central bank will „act as appropriate“ to sustain the economic expansion as the trade war with China takes a toll on global growth and the U.S. economy.
As we look back over the decade since the end of the financial crisis, we can again see fundamental economic changes that call for a reassessment of our policy framework. The current era has been characterized by much lower neutral interest rates, disinflationary pressures, and slower growth. We face heightened risks of lengthy, difficult-to-escape periods in which our policy interest rate is pinned near zero. To address this new normal, we are conducting a public review of our mo netary policy strategy, tools, and communications—the first of its kind for the Federal Reserve.
EUROPE’S largest economy Germany could crash into recession as car manufacturing growth plummets and Brexit cripples exports, its central bank has warned.
Bundesbank said that lower consumer spending and softer overseas demand has caused the economic downturn.
New ONS methodology revealed today has shown the UK economy is actually £26 billion larger than economists previously thought, having revised up 2016 GDP growth by 1.3%. Surely the biggest #DespiteBrexit story of them all.
The Office for National Statistics added around 26 billion pounds to the size of the world’s fifth-biggest economy in 2016, a rise equivalent to around 1.3% of gross domestic product and bringing total output to just under 2 trillion pounds.
Some Britons may feel a touch of schadenfreude from seeing that the German industrial juggernaut is spluttering but its woes are a troubling symptom of a slowing world economy.
Investors are on edge because the German economy shrank in the second quarter, and the US-China trade war still looms large over markets, despite the latest truce. Industrial production in China grew at the weakest rate in 17 years.
Is Boris Johnson the luckiest prime minister ever? This week, the Government can borrow money for ten years at 0.48 per cent and for thirty years at 1.16 per cent. At these rates, it would irresponsible not to borrow more.
– The Prime Minister has created a list of British employers considered at risk
– It comes after the country’s economy shrunk for first time in seven years
– Economy is the lowest it has been in a decade, prompting fears of recession
The number of unemployed in Italy jumped by more than one million people between the start of the global economic crisis in 2008 and 2012, the national statistical agency Istat said Thursday.
But the new missiles are unlikely to be deployed to counter the treaty’s other nuclear power, Russia, which the United States has said for years was in violation of the accord. Instead, the first deployments are likely to be intended to counter China, which has amassed an imposing missile arsenal and is now seen as a much more formidable long-term strategic rival than Russia.
Global stocks fell sharply on Friday after Donald Trump threatened to impose tariffs on $300bn (£247.6bn) of Chinese goods in a rapid escalation of the trade war between the world’s two biggest economies.
Yet Germany, which has a budget surplus and which can borrow money at sub-zero rates, doesn’t see the problem even as its own manufacturing sector contracts. Finance Minister Olaf Scholz told Bloomberg Television on Thursday, minutes before Draghi’s press conference, that he has no plans to loosen the country’s purse strings because it’s not “necessary or wise to act as if we were in a crisis.”
Respondents expect the deposit rate, already at a record low, to be reduced by 10 basis points to minus 0.5% in September. HSBC predicts a second cut of the same magnitude in December, and ABN Amro sees a second reduction at the start of next year. Money markets are pricing a 10-basis point cut in September.
in theory, lower interest rates will:
– Reduce the incentive to save. Lower interest rates give a smaller return from saving. This lower incentive to save will encourage consumers to spend rather than hold onto money.
– Cheaper borrowing costs. Lower interest rates make the cost of borrowing cheaper. It will encourage consumers and firms to take out loans to finance greater spending and investment.
– Lower mortgage interest payments. A fall in interest rates will reduce the monthly cost of mortgage repayments. This will leave householders with more disposable income and should cause a rise in consumer spending.
It’s easier and cheaper to employ humans to behave like machines than it is to develop machines that simulate human behaviour. Of course, many technology companies would rather you didn’t know this. Venture capitalists invest in the idea of human obsolescence. To them, routine human labour is an ungainly truth – the future, after all, lies in intangible capitalism, where returns flow to platform owners unrestricted by organised labour.
Neither Ms. Warren’s campaign nor that of Mr. Sanders will say at this point that they are deliberately eyeing each other, even though they are the candidates — out of more than 20 — who most represent the Democratic Party’s left flank.
“If they can close up an American factory and ship jobs overseas to save a nickel, that’s exactly what they will do — abandoning loyal American workers and hollowing out American cities along the way.”
The senator then turns her fire on the politicians who abetted these betrayals — mocking their attempts to use “globalization” as an alibi. “Globalization isn’t some mysterious force whose effects are inevitable and beyond our control,” she notes. “No — America chose to pursue a trade policy that prioritized the interests of capital over the interests of American workers.”
The arguments against the tariffs — voiced internally by Kushner, Lighthizer and Treasury Secretary Steven Mnuchin — did little to dissuade Trump, and Kushner was asked to call Mexican officials to inform them of the impending threat.
After the Wednesday night meeting in the Oval Office, the tariff order was finalized by the White House counsel and the office of Stephen Miller, a senior White House adviser and immigration hard-liner who oversees domestic policy.
Yet you might think that hardened Remainers could just admit to a tiny of nugget of good news in that the economy has continued to defy the recession they so confidently predicted would result from a vote for Brexit. But not a bit of it. According to a Guardian news report on the story, the unexpectedly strong performance of the economy was “helped by unprecedented stockpiling by manufacturers fearful of the impact from a no-deal Brexit.”
Mr. Trump is now moving ahead with plans to impose 25 percent tariffs on all remaining Chinese imports. Those new tariffs could go into effect in a matter of weeks.
In a statement Friday evening, the United States trade representative said Mr. Trump had “ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.”
European stocks rose on Friday, recovering from a six-week low as investors hope the United States and China can still resolve their trade dispute, even as a planned increase in US tariffs on Chinese imports comes into effect.
Acknowledging that continued talks on Friday stateside will be „positive,“ Nick Marro, analyst at the Economist Intelligence Unit, said …
China will have to take necessary countermeasures, said the delegation, which is currently in Washington for the 11th round of China-U.S. high-level economic and trade consultations.
Mr. Trump’s decision to proceed with the tariff increase came after a pivotal round of trade talks in Washington on Thursday night failed to produce an agreement to forestall the higher levies. The White House said talks would resume again on Friday but it remains uncertain whether the two sides can bridge the differences that have arisen over the past week.
China’s chief trade negotiator will travel to Washington this week, according to the commerce ministry, tempering fears that talks to resolve a protracted trade war between the US and Beijing had been scuppered.
Liu He, a vice-premier, will hold negotiations in Washington on Thursday and Friday, according to the Chinese ministry, which did not elaborate on the agenda.
May.05 — President Trump is ramping up pressure on China to finalize a trade deal during talks in Washington this week. He’s threatening to more than double tariffs on $200B of Chinese sales to the U.S. and he posed new import taxes.
In March 1989 Tim Berners-Lee, a scientist working at CERN, submitted a proposal to develop a radical new way of linking and sharing information over the internet. The document was entitled Information Management: A Proposal. And so the web was born.
The first website at CERN – and in the world – was dedicated to the World Wide Web project itself. Last April CERN initiated a project to restore the first website, and to bring back the spirit of that time through its technical innovation and the founding principles of openness and freedom.
In 1993 CERN put the World Wide Web software in the public domain.
We find that the sanctions have inflicted, and increasingly inflict, very serious harm to human life and health, including an estimated more than 40,000 deaths from 2017–2018; and that these sanctions would fit the definition of collective punishment of the civilian population as described in both the Geneva and Hague international conventions, to which the US is a signatory. They are also illegal under international law and treaties which the US has signed, and would appear to violate US law as well.
As many as 40,000 people may have died in Venezuela as a result of US sanctions that made it harder for ordinary citizens to access food, medicine and medical equipment, a new report has claimed.
The report, published by the Centre for Economic and Policy Research (CEPR) a progressive, Washington DC-based think tank, says those deaths took place following the imposition of sanctions in the summer of 2017.
At the same time real wages have risen yet again by 1.5% after inflation, and the unemployment rate has fallen to just 3.9%. This is the first time it has been below 4% in 45 years. Guido is still waiting for those 800,000 job losses that the Remain Campaign promised us…
Conte told parliament that a Memorandum of Understanding to be signed with President Xi Jinping hooking Italy up to China’s Belt and Road infrastructure initiative “do not remotely put into doubt our euro-Atlantic alliance”.
Since last year Maduro’s government has been trying to repatriate gold from the Bank of England, fearing it could be caught up in international sanctions against his administration.
State aid is not permitted and nationalization is all but impossible under the rigorous competition law enshrined in the Lisbon Treaty of 2007. Sixteen of Labour’s core manifesto commitments would be illegal under EU Law. Labour campaigned in 2017 as if Britain was already out of the EU—and did far better than expected. Some commentators even filed the Labour Party under the dreaded heading of “populism.” The truth is that the EU makes democratic politics very difficult.
The fortress walls of the Bank of England project an image of solidity, stability and impregnability. It matches the reputation it has tried to build over more than 400 years for sober analysis and, in recent years, steady impartiality.
Yet its defences have been infiltrated.
President Donald Trump’s economic advisor Kevin Hassett said Wednesday that Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin’s jobs are not under threat.
Hassett told an NBC News reporter at the White House that Powell’s role as the leader of the U.S. central bank is completely safe.
That assurance followed Hassett’s appearance on Fox Business, where the head of Trump’s Council of Economic Advisors said he is highly confident that the president is happy with Mnuchin.
(22.12.2018) President Donald Trump is opposed to the Federal Reserve’s rate hike campaign, but has never suggested firing Fed Chairman Jerome Powell, Treasury Secretary Steven Mnuchin said on Saturday.
„I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so,” Mnuchin said via Twitter.
Adriene Hill: So there were reports over the weekend that Trump has asked his advisers if he can remove Powell. And I want to start with just that big picture question here: Can he?
Binyamin Appelbaum: It’s a really big and open question at the moment. The law says that he can only remove a member of the Fed’s Board of Governors “for cause.”
The Federal Reserve sees economic growth slowing next year.
Amid concerns about weakening GDP growth, President Donald Trump cannot afford losing that selling point ahead of his 2020 re-election bid.
(20.12.2018) „If I were running Trump’s re-election campaign, Jay Powell would be my worst nightmare,“ CNBC’s Jim Cramer says.
Cramer argues the president is right to worry about a possible recession in 2019 as a result of the Powell’s rate hikes.
(18.12.2018) The greatest threat to President Donald Trump’s re-election bid may not be the slew of investigations closing in on his Oval Office but a possible economic slowdown. And the president knows it.
The Dow Jones Industrial Average fell again Monday, the latest dip in the roller coaster markets amid the strain of Trump’s trade war, rising interest rates and worries about a slowing global economy.
The BOE’s scenarios were more extreme than the government’s, and prompted criticism from some lawmakers, who accused Carney of undermining the BOE’s credibility.
Witnesses: Dr Mark Carney, Governor, Bank of England, Ben Broadbent, Deputy Governor for Monetary Policy, Bank of England, Sir Jon Cunliffe, Deputy Governor for Financial Stability, Bank of England, and Sam Woods, Deputy Governor for Prudential Regulation, Bank of England and Chief Executive Officer, Prudential Regulation Authority
Subject: The UK’s economic relationship with the European Union
Preparations have been made, the costs largely sunk already. Deal or no deal makes little difference.
(14.11.2018) Companies in the United Kingdom have embraced the inaugural China International Import Expo in an effort to hedge against uncertainties as the country prepares to leave the European Union, industry insiders say
Major British brands already established in China – such as Jaguar Land Rover, Bentley, British Airways and Standard Chartered – have taken the lead alongside small and medium-sized enterprises looking to test the waters in China for the first time.
(15.11.2018) However, imports from Great Britain for the first nine months of this year were 4% higher than for the same timeframe last year, reaching €13.1 billion.
(5.10.2018) U.K. starting salaries grew at the fastest pace more than three years in September as Britain’s impending exit from the European Union made it harder for employers to find enough qualified candidates.
Other countries would die for the traditional links we have with the bloc of countries that constitutes the Commonwealth. We have the inside track, based on a historical relationship with its members that – notwithstanding the old tensions of empire – has generally remained friendly and cooperative. Economists have suggested that due to the ‘commonalities’ of language, law and business practice across Commonwealth countries, the costs of each country trading with the other is typically 10-15 per cent lower than when dealing with other nations. Increasingly it has become clear that we’ve been running with the wrong pack.
Last week, I resigned as Brexit Secretary because I could not in good conscience support the proposed deal between the UK and the EU. There is still time to stand up to the bullying tactics from Brussels. But we must change course, or the flame of optimism and opportunity that sparked Brexit will be snuffed out.
(19.11.2018) While claiming to take back control, the Government’s “backstop” risks locking Britain into an indefinite halfway house it cannot leave without the agreement of the EU.
This is an unparalleled and unacceptable loss of sovereignty, which Labour will not accept on behalf of our country.
Bank of England Governor Mark Carney gave a guarded welcome to Prime Minister Theresa May’s Brexit deal as he confirmed the bank would deliver its verdict on the agreement next week.
Addressing lawmakers Tuesday, Carney said the withdrawal agreement would eliminate some of the uncertainty that has surrounded the British economy since the country voted to leave the EU in June 2016. It would provide businesses the platform to plan and invest.
The Bank of England governor spoke to MPs on the Treasury Select Committee about the importance of there being a transition period for the UK’s divorce for the EU. Mr Carney warned that if there is no deal, then it could greatly harm the economy with the bank being unable to do much to rectify the damage. He told the committee:
How’s that anti-Brexit saviour moment going then @davidschneider ?
China-India cooperation is also in line with each nation’s international strategy. The change in the international landscape has motivated developing countries to engage in multilateral cooperation and seek more say when it comes to protecting their own interests. China and India are both in favor of free trade. Down the road, they will need better coordination and more support from each other on issues such as the multilateral trade system and WTO reform.
(28.6.2010) Rather than being rewarded for its actions, though, Ireland is being penalized. Its downturn has certainly been sharper than if the government had spent more to keep people working. Lacking stimulus money, the Irish economy shrank 7.1 percent last year and remains in recession.
Joblessness in this country of 4.5 million is above 13 percent, and the ranks of the long-term unemployed — those out of work for a year or more — have more than doubled, to 5.3 percent.
Now, the Irish are being warned of more pain to come.
Trump does not have the legal authority to fire the Fed chair,
(10.10.2018) Investors have also been shaken by rising interest rates and bond yields triggered in part by recent Federal Reserve rate hikes.
Last year’s election proved the Labour leadership right about a national hunger for left-leaning economic policies. After a lost decade of stagnating wages, job insecurity and spiralling costs following the economic crash and austerity cuts, poll after poll is showing overwhelming public support for Labour’s economic plans of renationalisation of rail and utilities, investment in infrastructure and higher tax on the highest earners.
We have a plan to rebuild Britain.
Rebuilding industry. Rebuilding opportunity for workers. Rebuilding our communities. Rebuilding our economy. Rebuilding our public services. Rebuilding for people, not for profit. Rebuilding for families, not for investors.
Instead,… this year’s celebrations focused on the the regime’s economy. Civilians paraded across the square with floats displaying messages about socialism. And although there was no speech from the North Korean leader himself,… the ceremonial head of state, Kim Yong-nam , addressed the public with a softer tone,… emphasizing the regime’s initiatives for economic reform. Experts say that as long as the momentum for dialogue continues,… North Korea will hold back on its nuclear ambitions, and concentrate more on its economic growth and improving the lives of its people. Park Hee-jun, Arirang News.
The presidents discussed the current state and future prospects of trade and economic cooperation between the two countries and positively assessed the implementation of joint strategic projects, primarily in energy.
Claim of willingness for talks not enough; honesty the key/Talks concurrent with sanctions meaningless/Sanctions targeting Iranian children, people/If US administration ready, we’re ready to negotiate to receive their debts to Iranians since 1953
Turkey’s President Recep Tayyip Erdogan has spoken about the primary objectives during the first 100 days of his new administration. Speaking of western financial speculation against the Turkish Lira, Erdogan reiterated that the country is “facing an economic war, but we will win it”.
It is the first time parliament has summoned Rouhani, who is under pressure from hardline rivals to change his cabinet following a deterioration in relations with the United States and Iran’s growing economic difficulties.
Bannon seems to have discovered something that for members of the American intelligentsia is not only strange, but practically incomprehensible: Racism is not an issue that interests the majority of Americans. The economy, not racism, was the issue of the election. What truly interests Americans is not the Mexicanness of illegal migrants, but the illegality of so much Mexican migration. “The Democrats,” Bannon told an infuriated Robert Kuttner at The American Prospect a few days before he was sacked from the White House, “the longer they talk about identity politics, I got ’em. I want them to talk about racism every day. If the left is focused on race and identity, and we go with economic nationalism, we can crush the Democrats.”
Uber and other app-based firms will be watching the ruling with interest as they face similar legal challenges over the way they treat employees. Uber’s appeal of a decision granting its drivers benefits including overtime and paid vacation is scheduled to be heard by another court October 30.
(3.6.2018) That would pave the way to tap the North’s vast mineral reserves, which could be worth $6 trillion, according to a 2013 estimate by the North Korea Resources Institute in Seoul. It’s also home to what might be the world’s single-biggest rare earth deposit, a crucial element for electronic car engines and many high-tech gadgets the South is so good at churning out.
„India has stepped up its focus on East Asia as well as ASEAN and any addition of an emerging market like North Korea will be most beneficial for the country’s expanding export-oriented industries,“ said a trade source.
India’s Act East Policy, that was introduced by the Modi government, focusses on the extended neighbourhood in the Asia-Pacific region.
Mr. Gapen believes the unemployment rate could sink as low as 3 percent by the end of 2019. That would bring it to levels last seen in 1953, the height of the economic boom after World War II.
The U.S. economy added 223,000 jobs in May as U.S. companies continued their hiring spree, according to the Labor Department’s monthly jobs report released Friday. The unemployment rate fell to 3.8 percent, the lowest since 2000.
The unemployment rate dipped to 3.8 percent in May, reaching an 18-year low. That’s encouraging, yet unemployment was lower right after World War II, when it fell as low as 2.5 percent in 1953. The 1960s also boasted several periods of lower unemployment.
He especially called for efforts to make sure the benefits of growth are broadly shared.
„Still, there are many areas where we came too short to say the people’s lives are improving,“ Moon said, noting the average income of households in the lower 20 percent bracket has in fact decreased despite the 3.7 percent increase in the average income of all households in the first quarter.
The Indian Minister of State for External Affairs Gen VK Singh made a surprise trip to North Korea earlier this week as India sought to revive its ties with the isolated country. The visit sent a good signal for the Asian economy.
Singh was the first Indian minister received by the North Korean government in the country in nearly two decades, which added to evidence that Pyongyang will be willing to seek better ties with the international community.
(15.May) Avendano was one of those contractors, working in what’s known as the gig economy. That means he didn’t get benefits that most employees do, such things as health insurance, paid time off, or workers’ compensation.
(15.May) The findings reinforce our skepticism that Uber, and “gig work” more broadly, represent the “future of work.” Our results indicate that Uber drivers earn low wages and compensation and the total hours and compensation in the gig economy represent a very small share of total hours and compensation in the overall economy. These findings—and the fact that many Uber and other workers who provide personal services via a digital platform do so on a part-time basis primarily as a way to earn supplementary income—argue for a change in perspective.
Moon Jae-in handed his North Korean counterpart a blueprint for economic integration at last month’s historic Panmunjom summit
The number of children in Japan has fallen for the 37th straight year in a row, a sign the country’s attempts to offset the country’s severely aging population are failing.
On the website of real estate agency jiwu.com, an article outlined a popular rumor that as North Korea reforms its economy Dandong might turn into another Shenzhen, the Chinese mainland boom city near Hong Kong. The article encouraged people to buy property while prices are low.
The volume of property deals is also reportedly increasing.
The move boosted hopes among local investors about easing of tensions on the Korean Peninsula, which have been cited as a key reason for undervalued local stocks over the past decades, dubbed the „Korea Discount.“
The measures could mark Kim’s strategic course correction after incremental global sanctions have crippled his country’s economy, eroded public support and loyalty from the elites, and fueled diplomatic friction with China, its key economic patron.
The announcement came ahead of Kim’s summits with South Korean President Moon Jae-in on April 27 and United States President Donald Trump in May or early June.