Economics newsletter
Rachel Reeves is getting ready for the next market test
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
Why Westminster is wrong about gilt yields
It’s gilts season at Westminster. This is one of those unpredictable events, like the passing of a comet, that sees the residents of the political village staring at the skies and imputing all sorts of divine causes to the curious flashing lights they see there. Because of the ongoing excitement in the markets, a lot
Europe’s car industry is under attack on all fronts
It is half a century since Britain’s native car industry embarked on its long, painful decline, precipitated by Austin Allegros with rear windows falling off, endless strikes over the length of tea breaks and terrible commercial decisions such as to cede the hatchback market to overseas competition. But where Britain led, Germany and France now seem
Trump’s team will show Rachel Reeves how it’s done
As Trump Treasury Secretary nominee Scott Bessent rises, full of promise for his confirmation hearing in Washington next week, the UK is still reeling from a plunge in the value of the pound and a sharp rise in borrowing costs, directly tied to Rachel Reeves’s economic policies. The contrast in the approaches of these respective
AI won’t save Britain with one quick trick
Obviously, artificial Intelligence (AI) is a boom industry that will transform many other industries and make fortunes for some people. Anyone should want Britain to be involved and earn itself a slice of the AI pie. Why, then, does the government’s AI Opportunities Action Plan depress me? Apparently, according to Keir Starmer, it is going
Labour’s kowtowing to China will cost Britain
When the security services accessed the mobile phone of Yang Tengbo, the alleged Chinese spy who became a confidant and business partner of the Duke of York, they found a document in which Yang said of the duke, ‘He is in a desperate situation and will grab onto anything’. We can only assume there are
Rachel Reeves is making the same mistake as Liz Truss
Rachel Reeves returns from China this morning to face growing accusations that she has lost her grip on the public finances. This latest bond market crisis has brought into question whether the Chancellor is at risk of – or has already – broken her own fiscal rules. Capital Economics reports that a surge in gilt
Liz Truss’s legal threat against Keir Starmer is a mistake
In politics as in everyday life it is possible to be right at the same time as being terribly, terribly wrong. Look no further than Liz Truss instructing her lawyers to send a ‘cease and desist letter’ to Keir Starmer demanding that he stops accusing her of “crashing the economy”. The claim, she alleges, is not
Borrowing costs have just passed Liz Truss levels
The new year may have rustled up some surprise stand-offs for the Labour government (mainly calls from X founder Elon Musk for Keir Starmer to resign), but the rise of new problems does not mean the old problems have disappeared. A harsh reminder has been dished out this morning, as long-term borrowing costs reached a
Will taxpayers get their satellite bailout money back?
When the British government spent £400 million on the satellite internet start-up OneWeb back in 2020, it was seen as precisely the kind of active, tech-led industrial strategy that could re-boot the British economy. There were hopes the deal would help secure a place for the UK at the heart of the emerging space economy.