Economics newsletter
Who’s doing well out of the Trump slump?
Markets are not enjoying Donald Trump’s tariffs. Some 125 days have passed since his second election victory and the S&P 500 is on a clear downward trajectory thanks to Trump’s tariff policies and other poor US economic data. After the same number of days following Biden’s election, the S&P was up 13 per cent; for
The Wall Street plunge isn’t over yet
The plunge continues. It’s always a mug’s game trying to call the top of any market, but the plunge on Wall Street does feel as though it has got legs, so it is quite possible that we have indeed seen the peak for US equities. Since last week the Nasdaq has moved into correction territory
Are the markets turning on Trump?
China does not like tariffs, but big money in America likes them even less. If one thing has become clear amid the fog of the past week, it is that what will contain Donald Trump are the financial markets. China’s foreign minister, Wang Yi, attacked Trump on Friday for his imposition of tariffs, adding that
Europe could pay the price for Germany’s debt shake-up
Germany has finally decided to join the party – but Europe may come to regret it. After two decades of limited borrowing and fiscal restraint, Europe’s biggest economy is finally joining the high-debt club. Incoming chancellor Friedrich Merz will borrow €800 billion (£670 million), and perhaps much more, to pay for extra spending on defence
Angela Rayner is exercising her ‘right to switch off’ Britain’s growth
It was reported over the weekend that the government has dropped ‘the right to switch off’ from its Employment Rights Bill. Such a right, it has been widely asserted, had appeared in Labour’s manifesto for last year’s general election, promising that employees would be granted a legal right to ignore their boss’s emails outside their
Will Labour MPs scupper a US-UK trade deal?
A UK-US trade deal is on the table. On a surprisingly successful trip to Washington, US President Donald Trump made it clear to the Prime Minister Sir Keir Starmer that a trade agreement with the United States was close. “We could very well end up with a real trade deal where the tariffs won’t be
The energy price cap rise heaps more misery on Brits
Average gas and electricity bills will rise by £111 a year in April after the regulator Ofgem announced an increase to the energy price cap. The 6.4 per cent hike means the average dual-fuel household bill will hit £1,849 annually. The rise is more than anticipated, with analysts at Cornwall Insight predicting that bills would
Is X still worth £38 billion? Elon Musk thinks so
When Elon Musk bought Twitter in 2022, his many critics gleefully predicted a catastrophe. We were told that everyone would quit the site for its rivals, such as Bluesky and Mastodon. The rebranding to X made Musk the object of ridicule. Musk was warned that he was unlikely to see a return on the $44
Does it matter if Rachel Reeves fibbed on her CV?
Rachel Reeves is in the headlines again, for all the wrong reasons. The Chancellor’s entry in Who’s Who lists her as a contributor to the Journal of Political Economy. The problem? Reeves has, in fact, only published a single article in a far less prestigious publication, the European Journal of Political Economy. At this rate,
Kemi Badenoch is more interested in liberalism than conservatism
Kemi Badenoch made a speech today which mentioned the terms ‘liberal’ or ‘liberalism’ seven times before the word ‘conservative’ got a look in. The liberalism she was extolling in her address at the ARC conference in London was not of the leftist kind, but the ‘classic liberalism of free markets, free speech, free enterprise, freedom