BBC: Both Prime Minister Rishi Sunak and US President Joe Biden cited the global economic impact of Houthi attacks on Red Sea cargo ships in overnight statements as the reasoning behind military action.
The Treasury has modelled scenarios suggesting that disruption in the Red Sea could further shrink the UK economy, risking a recession.
The main fear in the Treasury's analyses is of a rise of at least $10 per barrel in the international price of crude oil and a 25% increase in the price of natural gas.
Rises such as these have not actually materialised, so far, mainly because of the actions of Saudi Arabia - the major oil producing nation - in soothing global energy markets with price cuts.
The US and UK will hope that their overnight strikes on Iran-backed Houthi rebels will help reverse widespread delays and disruption to Red Sea trading routes, by re-establishing safe passage through the Bab-al-Mandeb Strait into the Suez Canal.
But, on the other hand, there is now also a clear pathway of escalation to a wider Middle East conflict. » | Faisal Islam, Economics editor | Friday, January 12, 2024
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Friday, January 12, 2024
Tuesday, October 11, 2022
More German Businesses Go Bankrupt amid Weak Economy, High Inflation | DW News
A sharp uptick in the number of German firms beginning insolvency proceedings is raising eyebrows in Europe's largest economy. Some 762 firms declared bankruptcy in September — a 34% increase from the same period last year.
And the upward-trend is set to continue this month and the next, according to the Halle Institute for Economic Research. Its new report suggests that by November up to 40% more companies could be beginning insolvency proceedings, compared to the same period last year.
And the upward-trend is set to continue this month and the next, according to the Halle Institute for Economic Research. Its new report suggests that by November up to 40% more companies could be beginning insolvency proceedings, compared to the same period last year.
Sunday, May 01, 2022
In the Name of Job Flexibility, ‘Uberisation’ Is Spreading Its Tentacles across Society
THE GUARDIAN – OPINION: From health workers to beauticians, cleaners to academics, the erosion of our rights at work is setting us back a hundred years
In the late 18th century, as the impact of the Industrial Revolution bit into the lives of the nascent working class, the high cost of fuel, one study notes, “forced inhabitants of many southern regions to abandon home cooking”. Fuel costs were much greater in the south than in the north. As a result, Frederic Morton Eden observed in The State of the Poor (1797), “the culinary preparations of the Northern peasant are so much diversified, and his table so often supplied with hot dishes”, whereas in the south, working-class families could not afford to boil or bake potatoes, so were forced to buy cheap white bread and eat dinner cold.
Because it was more expensive to cook at home than to buy shop-made bread, there were more bakeries per head of population in poor areas such as Hampshire than in richer regions such as Yorkshire. More than 200 years on and we’re back in a Britain in which many poor families are being “forced to abandon home cooking” because of the high cost of fuel. Not only has there been an explosion in the use of food banks, but many food bank users “are declining products such as potatoes and other root veg because they can’t afford to boil them”. » | Kenan Malik | Sunday, May 1, 2022
In the late 18th century, as the impact of the Industrial Revolution bit into the lives of the nascent working class, the high cost of fuel, one study notes, “forced inhabitants of many southern regions to abandon home cooking”. Fuel costs were much greater in the south than in the north. As a result, Frederic Morton Eden observed in The State of the Poor (1797), “the culinary preparations of the Northern peasant are so much diversified, and his table so often supplied with hot dishes”, whereas in the south, working-class families could not afford to boil or bake potatoes, so were forced to buy cheap white bread and eat dinner cold.
Because it was more expensive to cook at home than to buy shop-made bread, there were more bakeries per head of population in poor areas such as Hampshire than in richer regions such as Yorkshire. More than 200 years on and we’re back in a Britain in which many poor families are being “forced to abandon home cooking” because of the high cost of fuel. Not only has there been an explosion in the use of food banks, but many food bank users “are declining products such as potatoes and other root veg because they can’t afford to boil them”. » | Kenan Malik | Sunday, May 1, 2022
Tuesday, November 23, 2021
As Virus Cases Rise in Europe, an Economic Toll Returns
THE NEW YORK TIMES: A series of restrictions, including a lockdown in Austria, is expected to put a brake on economic growth.
Vienna decorated for Christmas. Austria is mandating vaccinations and imposed a nationwide lockdown on Monday. | Georg Hochmuth/Agence France-Presse, via Getty Images
Europe’s already fragile economic recovery is at risk of being undermined by a fourth wave of coronavirus infections now dousing the continent, as governments impose increasingly stringent health restrictions that could reduce foot traffic in shopping centers, discourage travel and thin crowds in restaurants, bars and ski resorts.
Austria has imposed the strictest measures, mandating vaccinations and imposing a nationwide lockdown that began on Monday. But economic activity will also be dampened by other safety measures — from vaccine passports in France and Switzerland to a requirement to work from home four days a week in Belgium.
“We are expecting a bumpy winter season,” said Stefan Kooths, a research director of the Kiel Institute for the World Economy in Germany. “The pandemic now seems to be affecting the economy more negatively than we originally thought.”
The tough lockdowns that swept Europe during the early months of the pandemic last year ended up shrinking economic output by nearly 15 percent. Buoyed by a raft of government support to businesses and the unemployed, most of those countries managed to scramble back and recoup their losses after vaccines were introduced, infection rates tumbled and restrictions eased.
In September, economists optimistically declared that Europe had reached a turning point. In recent weeks, the main threats to the economy seemed to stem from a post-lockdown exuberance that was causing supply-chain bottlenecks, energy-price increases and inflation worries. And widespread vaccinations were expected to defang the pandemic’s bite so that people could continue to freely gather to shop, dine out and travel. What was not expected… » | Patricia Cohen and Melissa Eddy | Tuesday, November 23, 2021
Europe’s already fragile economic recovery is at risk of being undermined by a fourth wave of coronavirus infections now dousing the continent, as governments impose increasingly stringent health restrictions that could reduce foot traffic in shopping centers, discourage travel and thin crowds in restaurants, bars and ski resorts.
Austria has imposed the strictest measures, mandating vaccinations and imposing a nationwide lockdown that began on Monday. But economic activity will also be dampened by other safety measures — from vaccine passports in France and Switzerland to a requirement to work from home four days a week in Belgium.
“We are expecting a bumpy winter season,” said Stefan Kooths, a research director of the Kiel Institute for the World Economy in Germany. “The pandemic now seems to be affecting the economy more negatively than we originally thought.”
The tough lockdowns that swept Europe during the early months of the pandemic last year ended up shrinking economic output by nearly 15 percent. Buoyed by a raft of government support to businesses and the unemployed, most of those countries managed to scramble back and recoup their losses after vaccines were introduced, infection rates tumbled and restrictions eased.
In September, economists optimistically declared that Europe had reached a turning point. In recent weeks, the main threats to the economy seemed to stem from a post-lockdown exuberance that was causing supply-chain bottlenecks, energy-price increases and inflation worries. And widespread vaccinations were expected to defang the pandemic’s bite so that people could continue to freely gather to shop, dine out and travel. What was not expected… » | Patricia Cohen and Melissa Eddy | Tuesday, November 23, 2021
Monday, September 20, 2021
British ‘Baby Shortage’ Could Lead to Economic Decline, Says Thinktank
THE GUARDIAN: Social Market Foundation suggests measures including better childcare provision to increase birthrate
Britain is facing a “baby shortage” that could lead to “long-term economic stagnation”, a thinktank has said.
The Social Market Foundation (SMF) said the birthrate was almost half what it was at its postwar peak in the 1960s, and the country’s ageing population could lead to economic decline.
It said ministers should set up a cross-government taskforce to consider the issue, and one helpful measure might be better childcare provision. The thinktank said typical British working parents spend 22% of their income on full-time childcare, more than double the average for western economies.
The birthrate in England and Wales peaked in 1964 when the number of children per woman averaged 2.93. Last year it was 1.58, well below the 2.1 replacement level needed to keep the population rate stable, and in Scotland it was even lower at 1.29. » | Andrew Sparrow, Political correspondent | Monday, September 20, 2021
Britain is facing a “baby shortage” that could lead to “long-term economic stagnation”, a thinktank has said.
The Social Market Foundation (SMF) said the birthrate was almost half what it was at its postwar peak in the 1960s, and the country’s ageing population could lead to economic decline.
It said ministers should set up a cross-government taskforce to consider the issue, and one helpful measure might be better childcare provision. The thinktank said typical British working parents spend 22% of their income on full-time childcare, more than double the average for western economies.
The birthrate in England and Wales peaked in 1964 when the number of children per woman averaged 2.93. Last year it was 1.58, well below the 2.1 replacement level needed to keep the population rate stable, and in Scotland it was even lower at 1.29. » | Andrew Sparrow, Political correspondent | Monday, September 20, 2021
Saturday, September 04, 2021
Lebanon as We Once Knew It Is Gone
THE NEW YORK TIMES: BEIRUT — I never thought I would live to see the end of the world. But that is exactly what we are living today in Lebanon. The end of an entire way of life. I read the headlines about us, and they are a list of facts and numbers. The currency has lost over 90 percent of its value since 2019; 78 percent of the population is estimated to be living in poverty; there are severe shortages of fuel and diesel; society is on the verge of total implosion.
But what does all this mean? It means days entirely occupied with the scramble for basic necessities. A life reduced to the logistics of survival and a population that is physically, mentally and emotionally depleted.
I long for the simplest pleasures: gathering with family on Sundays for elaborate meals that are unaffordable now; driving down the coast to see a friend, instead of saving my gas for emergencies; going out for a drink in Beirut’s Mar Mikhael strip without counting how many of my old haunts have shut down. I never used to think twice about these things, but now it’s impossible to imagine indulging in any of these luxuries.
I begin my days in Beirut already exhausted. It doesn’t help that there’s a gas station around the corner from my house. Cars start lining up for fuel the night before, blocking traffic, and by 7 a.m. the sound of blaring horns and frustrated shouting from the street is fraying my nerves.
It is nearly impossible to sit down to work. My laptop battery lasts only so long anyway. In my neighborhood, government-provided power comes on for just an hour a day. The UPS battery that keeps the internet router working runs out of juice by noon. I’m behind on every deadline; I’ve written countless shamefaced emails of apology. What am I even supposed to say? “My country is falling apart and there’s not a single moment of my day that isn’t beholden to its collapse”? Nights are sleepless in the choking summer heat. Building generators operate for only four hours before going off around midnight to save diesel — if they are turned on at all. » | Lina Mounzer | Friday, September 3, 2021
Saturday, August 21, 2021
Afghanistan Faces Economic Shock as Sanctions Replace Foreign Aid
THE NEW YORK TIMES: The Taliban will be under pressure to keep a fragile economy afloat.
Shoppers on Friday in Kabul, Afghanistan. The nation’s former central bank governor, Ajmal Ahmady, warned that food prices could soar. Photo: Victor J. Blue for The New York Times
WASHINGTON — As the Taliban attempt the precarious shift from insurgent movement to functioning government, Afghanistan is facing the heightened risk of a financial collapse after being propped up for the past two decades by foreign aid that now accounts for nearly half its legal economy.
The fate of the Afghan economy will be determined by decisions that the Biden administration and other countries must make on whether to recognize the Taliban as a legitimate government. In the meantime, the United States and the international community are already shutting the flow of money, leaving Afghanistan in the stranglehold of sanctions that were designed to cut the Taliban off from the global financial system. Analysts say the looming shock threatens to amplify a humanitarian crisis in a country that has already endured years of war.
Signs of strain were evident this week as the value of Afghanistan’s currency, the afghani, plunged to record lows and the nation’s most recent central bank governor, Ajmal Ahmady, warned that inflation would likely send food prices soaring. The United States, which has poured about $1 trillion into Afghanistan over 20 years, moved to block the Taliban’s access to Afghanistan’s $9.4 billion in international reserves. And the International Monetary Fund suspended plans to distribute more than $400 million in emergency reserves to the country. » | Alan Rappeport | Saturday, August 21, 2021
WASHINGTON — As the Taliban attempt the precarious shift from insurgent movement to functioning government, Afghanistan is facing the heightened risk of a financial collapse after being propped up for the past two decades by foreign aid that now accounts for nearly half its legal economy.
The fate of the Afghan economy will be determined by decisions that the Biden administration and other countries must make on whether to recognize the Taliban as a legitimate government. In the meantime, the United States and the international community are already shutting the flow of money, leaving Afghanistan in the stranglehold of sanctions that were designed to cut the Taliban off from the global financial system. Analysts say the looming shock threatens to amplify a humanitarian crisis in a country that has already endured years of war.
Signs of strain were evident this week as the value of Afghanistan’s currency, the afghani, plunged to record lows and the nation’s most recent central bank governor, Ajmal Ahmady, warned that inflation would likely send food prices soaring. The United States, which has poured about $1 trillion into Afghanistan over 20 years, moved to block the Taliban’s access to Afghanistan’s $9.4 billion in international reserves. And the International Monetary Fund suspended plans to distribute more than $400 million in emergency reserves to the country. » | Alan Rappeport | Saturday, August 21, 2021
Saturday, March 18, 2017
Brexit to Affect Northern Ireland’s Economy
Sunday, May 06, 2012
BBC: George Osborne has said his party will focus on what matters to the public amid criticism from Conservative MPs in the wake of local election defeats.
Some Tories have urged the coalition to drop plans for electing the House of Lords and legalising gay marriage in favour of more populist policies.
The chancellor told the BBC ministers should "focus 100%" on the economy and not get "distracted" by other issues.
But they would still do "socially progressive" things, he insisted.
He was responding to criticism of the coalition's direction and priorities from some Conservative-supporting newspapers and backbench Tory MPs.
On Wednesday, the coalition will outline its agenda for the next year in the Queen's Speech, as it tries to regain the initiative after both the Conservatives and the Lib Dems suffered heavy losses in local elections.
'Change direction'
Many Conservative MPs want ministers to use the occasion to assert more traditional Conservative priorities on issues such as welfare, crime and tax and either delay or abandon proposals to legalise gay marriage and reform the House of Lords, seen predominately as Liberal Democrat ideas.
Mr Osborne told the BBC's Andrew Marr Show that "100% of our efforts need to be directed" at fixing the economy, which is back in recession. » | Sunday, May 06, 2012
Related »
Friday, March 02, 2012
Despite support from 11 countries for the Prime Minister’s growth plan sent to Brussels 10 days ago, Herman Van Rompuy failed to include any of the proposals in a draft text to be agreed at a summit today.
Instead, said diplomats, the President of the European Council, who runs EU summits, included proposals from France and Germany “almost word for word”.
As last night’s EU employment and growth summit opened, Mr Cameron stood up to “complain” that his call for “clear targets, timetables setting out dates and accountability” had been snubbed, government sources disclosed.
“He complained. He asked why it was that the views of 12 countries, representing more than half the EU’s population, had not been reflected,” said a source.
Mr Cameron clashed with Mr Van Rompuy over his plan to tackle the “crisis of growth” minutes before the Belgian was appointed to a second two-and-a-half-year term as EU president.
Mr Van Rompuy, who earns £249,000 a year, more than twice the salary of the British leader, has been accused of doing the bidding of Germany and France and of failing properly to represent all 27 EU countries. » | Bruno Waterfield, in Brussels | Friday, March 02, 2012
Monday, January 30, 2012
THE DAILY TELEGRAPH: President Nicolas Sarkozy has stated Britain is a country with "no industry" as he set out "shock measures" to reinvigorate France's faltering economy.
A UK official said: “It is not true. The percentage of GDP that is manufacturing is11 per cent, the same as in France.”
Manufacturing as a percentage of GDP was 11 per cent in the UK and in France in 2009, the last comparable figures.
“UK industrial production as a share of GDP was 15 per cent, compared to 12.5 per cent in France in the same year. What he said is not true. He has got an election.”
Defending his efforts to save the euro and the French economy, Mr Sarkozy said: “The financial crisis is calming down. Europe is no longer on the edge of the abyss...The elements of a stabilisation of the financial situation in the world and in Europe are in place.”
Mr Sarkozy all but announced his candidacy for the two-round election, due to be held on April 22 and May 6. “I have a rendezvous with the French,” he said. “I will not shirk my responsibility.”
But the uncharacteristically downbeat president admitted to having "regrets" about some of his policies, which he said he would address "at the appropriate time".
His remarks came a day after Chancellor Angela Merkel of Germany backed his — as yet unannounced — re-election bid by unexpectedly announcing that she would join him on the campaign trail.
In a hour-long “do or die” TV interview broadcast simultaneously by nine channels, Mr Sarkozy adopted Churchillian tones as he unveiled measures from reducing working time and salaries to save jobs to raising VAT in order to cut employers’ contributions by €13 billion (£11 billion). However, the man who staked his presidency on boosting the French economy faces a tough task as he lags in the polls, unemployment stands at a 12-year high and public debt is at record levels. Read on and comment » | Henry Samuel, Paris | Monday, January 30, 2012
Wednesday, January 25, 2012
Tuesday, September 27, 2011
An outspoken City trader left interviewers open-mouthed as he admitted that traders 'don't really care that much' about the prospect of an economic collapse.
Alessio Rastani astonished BBC viewers yesterday by describing his hopes of profiting from a recession, adding: 'The governments don't rule the world - Goldman Sachs rules the world.'
The self-styled 'independent trader' also claimed he had been 'dreaming of this moment for three years', as the global economy faces continuing uncertainty. » | Hugo Gye | Tuesday, September 27, 2011
Tuesday, May 24, 2011
MAIL ONLINE: It's a frustration experienced by most people when they've made phone calls to large companies.
An unfamiliar voice answers the phone in a call centre hundreds of miles away where cheap labour is commonplace.
But in a reversal of fortunes it now appears that large Indian companies are actually now themselves outsourcing - to U.S. shores.
Large corporations that have boomed in India amid the country's nimble economy have been drawn to the U.S. where unemployment has soared.
Struggling residents desperate for work are paid between $12 and $14 a hour to be stationed in tiny cubicles for long shifts of telesales work.
Once the employees are established, many are offered the chance to be flown to India themselves - the same tactic Western countries have done in India.
Experts said that the phenomenon, which could become more widespread in the coming years, is partly due to Indian workers demanding higher wages and higher living standards. Is this a taste of the future? Outsourcing goes full circle as Indian firms look to the U.S. for cheap labour » | Daily Mail Reporter | Monday, May 23, 2011
Monday, May 23, 2011
The recent uprising in Egypt brought political changes to the country, but it has also scared the tourists away.
In February, there were just over 200,000 foreign visitors, while the year before the number was 1.1 million.
With this loss, many businesses are now struggling to cope. And even the finance minister admits that when the tourist industry is hit, the entire economy takes a knock.
Al Jazeera's Alan Fisher reports from Giza.
Sunday, May 22, 2011
Saturday, April 09, 2011
LE POINT: La présidente du FN a tenté d'expliquer son programme économique pour la France. Sans convaincre."De quoi ? Qui ça ? Ah oui ! Borloo a quitté l'UMP... Très bien, vous savez, moi, je suis pour la concurrence !" plaisante Marine Le Pen, vendredi matin. Pour la concurrence en politique, peut-être, mais en économie, rien n'est moins sûr... Tout sourire, lunettes de soleil sur la tête, veste couleur crème et bottines noires, la présidente du Front national fume une dernière cigarette avant de se livrer à un exercice dont elle n'a pas l'habitude. Son équipe a en effet convié des journalistes économiques - et non pas les "politiques", qu'elle connaît bien - à un "petit-déjeuner de travail " pour expliciter les grandes orientations de son programme dans ce secteur. "Nous ne sommes pas légitimes que sur l'immigration et l'insécurité", veut-elle convaincre. Elle souhaite démontrer que son programme n'est "ni simpliste, ni fantaisiste, ni ringard". » | Par Pauline de Saint Remy | Vendredi 08 Avril 2011
Thursday, April 07, 2011
THE DAILY TELEGRAPH: Portugal last night became the third European Union country after Greece and Ireland to formally request an emergency bail–out which could cost Britain £4.4 billion.
The country's caretaker prime minister José Sócrates said the measure had been taken after the stricken nation had run out of options.
Economists last night put the UK's involvement in a Portuguese bail–out at up to a potential £4.4billion.
After months of resisting having to apply for a bail–out from the EU and the International Monetary Fund, Portugal's cost of borrowing has reached unsustainable levels.
Addressing the nation last night Mr Sócrates, said: "I have always said that asking for aid would be the final way to go, but we have reached the moment."
It is understood that the rescue fund could be as high as £70 billion, or €80 billion.
Sources close to the Treasury said last night that Britain would take part in any Portugal–related discussions involving the EU's 27 member states. However, the type of bail–out is yet to be discussed and therefore the extent of the UK's exposure was impossible to gauge, the sources said. » | James Hall | Thursday, April 07, 2011
THE DAILY TELEGRAPH: Spain 'won't follow Portugal' with bail-out: Spain said it will not follow ailing neighbour Portugal in seeking a European bail-out. » | James Hall | Thursday, April 07, 2011
Friday, March 25, 2011
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