Money news

Why Trump’s ‘trade war’ makes strategic sense

Has Donald Trump sparked off a trade war? His plans for a 25 percent tariff on steel imports and 10 percent tariff on aluminum have shocked friend and foe alike. China is outraged; so are Canada, Japan, and South Korea—allies that in fact export more steel to the U.S. than China does. They stand to be hurt worst if they aren’t granted exemptions or cut special deals by the president. Trump accuses the Chinese of ‘dumping’ steel into the American market, while the legal grounds for his new tariffs rest in the idea that strategically critical manufacturing is endangered by a diminished U.S. metals industry. But if the tariffs inflict

Freddy Gray

1,2,3,4 — Trump declares a trade war

‘Whatever complicates the world more — I do,’ Donald Trump once said. As President, that still seems to be his mantra. Everybody knows that he feels America has been ripped off for decades when it comes to global trade — and that he intends address imbalances that hurt his country wherever he can. But his abrupt decision to announce huge tariffs on steel and aluminium has sent shockwaves across the world. It has thrown global markets into a panic. It has caused division in his White House and put him at odds with his party establishment, which is ideologically committed to free trade and terrified of protectionism. It is vintage

American Healthcare and the NHS

Donald Trump recently disparaged Britain’s National Health Service for “going broke and not working,” leading Health Secretary Jeremy Hunt to express his pride in a system “where all get care no matter the size of their bank balance.” But the news has been filled for months with stories of people unable to access care they need under the NHS, regardless of their efforts or financial resources. Beyond the nationalistic pride and defensiveness of politicians both sides of the Atlantic, how do British and American healthcare really compare? Are both sides as crazy as the other imagines, or do they each know something the other can learn from? Sweeping generalizations regarding

Controversy PR: how brands cash in on the offence economy

The opposite of virtue is not Vice. It’s the Daily Mail. This week, Centre Parcs announced that it would be joining an increasing number of brands – Lego, Paperchase, the Southbank Centre – who have chosen to stop advertising in the newspaper. The catalyst this time was an article by Richard Littlejohn, in which he approached the subject of same-sex parenting with his typical pose of bemused middle Englander – all the more sharply defined from the vantage point of his Florida villa. The piece – which tore into dads-to-be Tom Daley and his partner Dustin Lance Black – was criticised in some quarters as ‘homophobic’. Cue the PR of

The cost of the Matt Hancock app

When Matt Hancock released the ‘Matt Hancock app’ this month, there was much mockery from his critics. While some found the idea of a personal app egocentric, others queried whether the Culture Secretary’s app was in breach of data protection laws. Now thanks to the latest register of interests it’s possible to know what the app is worth in real terms. It turns out that the app cost a whole £6,000 to make and maintain (per annum): Well, at least it hasn’t cost Hancock – or the taxpayer – a penny. The app services were a donation from Disciple Media.

Theresa May’s tuition fees plan is rotten politics

I don’t really object to bad policy, it’s the rotten politics I can’t stand. There would be something almost amusing about a Conservative prime minister gravely intoning, in effect, ‘Labour are right; please don’t vote for them’ if it weren’t so head-thuddingly stupid.  Remarkably, however, this is the position into which Theresa May has put herself. Labour’s policy on university tuition fees may be a) ruinously expensive and b) a boon to the most affluent but it is c) easily understood. Labour would – or, rather, say they would – scrap tuition fees.  Responding to this – and, more broadly to their problem with ‘younger’ voters (i.e., anyone under 50)

Maternity leave isn’t all good news for business

The never-ending churn of stories explaining why it is awful to be a woman has a new focus. A survey of workplace ‘decision-makers’ published this week has exposed the shocking news that some employers think maternity leave can be a bit inconvenient. That’s right: some sexist and uncaring bosses do not feel delight when mum-to-be announces her plans but instead worry about the impact on the bottom line. A poll conducted for the Equality and Human Rights Commission (EHRC) has revealed that almost 60 per cent of employers think a woman applying for a job should disclose whether she is pregnant. Of the 1,106 male and female ‘decision-makers’ surveyed, 46

Katy Balls

Theresa May risks conceding the argument to Labour on tuition fees

After last month’s purge of the Department for Education and following months of speculation among Tory MPs, No 10 have finally showed their hand on university education. The Prime Minister is to launch a year-long review of university and adult technical education. The aim is to de-toxify the party among young voters who are worried about the current levels of student debt – be it by appealing to their parents and grandparents. On the menu of ideas being mooted are the return of university maintenance grants ( or ‘maintenance support’), lower tuition fees for courses that are cheaper to run such as arts degrees and cuts to student loan interest rates. There’s

The Spectator Podcast: Bad charity

On this week’s episode, we look at the Oxfam aid scandal and whether charities do more harm than good. We also tackle the controversial practice of stop-and-search before sampling some of the alcohol-free delights than might keep you off the booze this Lent. The news cycle for the past week has been dominated by revelations about the charity Oxfam, with senior figures implicated in ‘sex for aid’ bartering in crisis zones. Figures from Minnie Driver to Desmond Tutu have quit roles at the beleaguered charity, but bigger questions are being raised about how foreign aid is spent. In the magazine this week, Harriet Sergeant looks at the behaviour of international charities, whilst

Can long-term forecasters answer these questions?

I find it difficult to believe some in the media are taking these latest economic forecasts for 15 years outside the EU seriously. They have all the hallmarks of the approach that the Treasury used to get the short-term forecast for the aftermath of a Brexit vote so hopelessly wrong. The first thing to stress is the forecasts which state the UK as a whole will lose 2 percent of GDP if we stay in the single market, 5 percent if we leave with a trade deal, and 8 percent if we leave without a trade deal are not saying we will be between 2 to 8 percent worse off in 15

Tom Goodenough

What the papers say: It’s time to bin the foreign aid target

The Oxfam sex abuse scandal rumbles on, with the Times reporting that the charity knew about the questionable conduct of two men before they were posted to work in Haiti. The paper says it is time for a serious shake-up in the way in which international aid is meted out to avoid a repeat of this story. It is clear that there ‘is now a serious disconnect between the priorities set by the foreign secretary and the policies which flow from the wealthier international development department’s ability to effect change’, says the paper. This is because of DFID’s ‘much bigger budget’ – a result of the government’s ring-fenced commitment to

The Tesco equal pay claim sets a dangerous precedent

I have decided that my work is of equal value to that of Claudia Schiffer and that therefore in future I should be paid the same as her. Why not? Okay, we don’t quite do the same thing, but we both get up in the morning, go out and do what we do as best we can. Yet she is paid more than I am, which is indefensible. That is pretty much the basis of the claim by 100 female Tesco shop floor workers who have launched an action against the supermarket claiming that they should be paid the same as men who work in the store’s warehouses. It is

Trumponomics is working

As Donald Trump makes his State of the Union address this evening his many opponents have an increasingly large problem: the US economy. Whatever else you might say about the President it is becoming impossible to deny that the economy has done extremely well in the year since he became president. Growth accelerated from 1.5 per cent in 2016 to 2.3 per cent in 2017. Most forecasts for 2018 – for what they are worth – see it leaping to around 3 per cent. This is the sort of growth the developed world had become used to prior to the 2008/09 crisis, but which had eluded it in the decade

Jamie Murray is wrong about doubles players’ earnings

Who doesn’t love the Murray family? Andy, a unique sporting hero; Judy, a magnificent coach and the best tennis mum. And, er, Jamie? Fine doubles player of course. But he’s now gone way off piste calling for vastly more prize money for doubles players, adding: ‘There’s a lot of excitement around the doubles game.’ Are you sure, Jamie? There is no excitement about doubles tennis apart from during the Captain’s Plate at the local club. Doubles is a sideshow at tournaments, rarely shown on TV apart from by the BBC, who have 2,000 Wimbledon hours to fill. There’s not a sane sports fan in the world who could name the

Defence cuts should trouble us all

This week, General Sir Nick Carter, Chief of the General Staff, made it quite clear how he would like to fight the Russians should they invade Eastern Europe or start a war with NATO: We should identify Russian weaknesses and then manoeuvre asymmetrically against them. First and foremost, perhaps we should be in the business of building real institutional capacity in neighbouring states so that they have the strength and confidence to stand up to Russia and the internal resilience to withstand pressures designed to bring them down from within. Carter went on to say that we need to reduce our energy dependency on the East, better protect our critical

The ‘experts’ must learn their lesson from Project Fear’s failure

Unemployment would soar. Trade would collapse. Factories would close, and house prices would be in freefall. Rewind to the spring and summer of 2016, when Project Fear was at its peak, and we were meant to be shivering in the streets by now, flicking through battered copies of ‘The Road’ for tips on surviving in a post-apocalyptic wasteland as a result of leaving the EU. Instead, we learned today that the UK economy is doing pretty well. It expanded by 0.5 per cent in the latest quarter, well ahead of forecasts. Even the Governor of the Bank of England, Mark Carney, one of the dark overlords of Project Fear, now agrees

Steerpike

Amber Rudd’s fighting fund

Amber Rudd is frequently touted as a frontrunner in any Tory leadership race, but the Home Secretary has kept schtum on whether or not she actually fancies her chances. So, is Rudd secretly readying herself for a shot at getting the top job when May steps down? Mr S. only asks because Rudd lists a donation towards a ‘fighting fund’ in the latest MPs’ register of interests: Of course, the money is probably going towards ensuring that Rudd actually manages to cling on in her marginal constituency of Hastings and Rye. She narrowly avoided being ousted from the seat at last year’s snap election, beating her Labour rival by just

Groping wasn’t the worst thing going on at The Presidents Club

Once again public figures are fanning themselves with shocked surprise at something perfectly comprehensible to everyone else: men behave boorishly when drunk, sans wives, in the company of young women in short skirts paid to make themselves friendly. Of course, what went on at the Dorchester that night is seriously not okay and it’s good news the Presidents Club is no more. But the problem wasn’t just the groping. It was the event itself, and specifically the model of philanthropy on display. Too many rich people see charity as something peripheral to the real business of life. Inoculated by their wealth from any exposure to the demand side of what charities

Great Ormond Street is wrong to return the Presidents Club’s cash

The Presidents Club dinner is not the type of event to which I tend to be invited and neither do I suspect I would go were I to be asked – although in truth that is as much down to my native tightfistedness as to the reports of boorish behaviour from this year’s event. I don’t like the idea of anyone trying to get me drunk in order that I might lose my inhibitions and start writing a very large cheque for charity, however worthy the cause. I would rather make my charitable donations when sober, thank you very much. Were I running a charity, on the other hand, I

Staying in the customs union would be a risky bet for May

There’s renewed speculation in Westminster that Britain might end up staying in the customs union. The CBI is calling for the UK to stay in a customs union with the EU and Labour is expected to move to backing customs union membership soon. The argument goes that because customs union membership does not require free movement, it is compatible with the referendum result. Big exporting businesses tend to like the idea as it would ease most of the bureaucratic problems in moving goods around post-Brexit. But I don’t think Theresa May will go for this idea. If Britain stays in the customs union, then it can’t do comprehensive free trade