Matthew Lynn

Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

Can Rachel Reeves get a US trade deal over the line?

As the Chancellor Rachel Reeves flies into Washington for a series of high-level meetings, there is lots of spin from the Treasury that she is about to tie up a trade deal with the United States. The plan is that it would save the UK from tariffs and may even give a much needed boost

Donald Trump has bowed to the markets

A deal will be worked out with China to reduce the tariffs. The chairman of the Federal Reserve won’t be fired. Over the last 24 hours, President Trump has softened his stance on two key planks of his economic policy. It is not hard to work out why. For all the bluster, Trump is ultimately

Trump won’t win against the Fed

President Trump yesterday escalated his attacks on the Chairman of the Federal Reserve Jerome Powell over his reluctance to cut interest rates, prompting a fresh plunge on Wall Street. The President may appear determined to cut his central banker down to size. And yet the reality is that Powell is completely right not to cut

Can Starmer sell a US trade deal to UK business?

The White House reportedly expects that a trade deal between the United States and the UK could be signed within the next few weeks. This should be a big deal, at least for the small island if not for the world’s biggest economy. There could be a grand signing ceremony at Buckingham Palace. Or at

Only a US trade deal can save UK pharma from Trump’s tariffs

Forget whisky, cars or chemicals. The real blow to the British economy from President Trump’s determination to impose steep tariffs on everything the United States imports from the rest of the world is still to come. Over the next few days, Trump plans to unveil levies on pharmaceuticals. And if the UK can’t find a

Is Donald Trump ready to weather a US recession?

A recession now looks even more certain for the United States than it does for the UK. Output has flattened. The chaotic implementation of Donald Trump’s tariff regime has left businesses bewildered. And consumers will soon be facing huge price rises. Of course, the States might well emerge in better shape at the end of

Nationalising British Steel won’t fix a thing

There will be some stirring speeches about saving jobs. There will be lots of grand rhetoric about securing a great British industry. Who knows, some of the more mischievous Labour backbenchers may even break out into a chorus on the Red Flag. Parliament will vote on Saturday in favour of an emergency bill that will

Donald Trump has got what he wanted

Donald Trump has peered into the abyss. The US President watched the Wall Street meltdown and the global trading system (from which America benefits as much as anyone) start to collapse, and he hit pause. The conventional narrative will be that Trump has blinked, but I think he simply got what he wanted. Yesterday’s decision

Trump shock, cousin marriage & would you steal from a restaurant?

39 min listen

This week: Trump’s tariffs – madness or mastermind? ‘Shock tactics’ is the headline of our cover article this week, as deputy editor Freddy Gray reflects on a week that has seen the US President upend the global economic order, with back and forth announcements on reciprocal and retaliatory tariffs. At the time of writing, a

The EU is making a big mistake by retaliating against Trump

A Harley-Davidson will cost you a little more in France; Florida orange juice will be more expensive in Germany and American soybeans will go up in price everywhere across Europe. The European Union has decided to start taking the fight back to President Trump with a round of retaliatory tariffs. The trouble is, it is

The hidden logic behind Trump’s market meltdown

Donald Trump’s announcement of huge levies on all the US’s major trading partners has triggered a global stock market meltdown, which may soon be followed by a full-blown recession. Almost no mainstream economist, and certainly none who believes in free markets and free trade, has a good thing to say about Trump’s tariffs. Yet there

Is the worst of the market crash over?

The FTSE-100 is up by a couple of hundred points. Germany’s DAX has added 400 points, and in Tokyo the Nikkei 225 rose by 6 per cent overnight. After the wild trading ever since President Trump announced the imposition of huge tariffs on all of America’s major trading partners, some stability appears to have returned

Rachel Reeves could be Trump’s first tariff crash victim

There will be plenty of victims of the crash currently playing out across the global financial markets. A few hedge funds may well fail. The trading desks of the main investment banks will be watching their annual bonuses disappear. And ordinary investors will be nursing some big losses on their investment portfolios. But the most

Trump can’t ignore the stock market carnage forever

As it turned out, the only thing Liberation Day was actually liberating anyone from was their money. In the wake of President Trump’s imposition of a massive round of tariffs on America’s trading partners the stock market has been in freefall. For the moment Trump is ignoring that. But he won’t be able to forever

Trump’s tariffs are just bizarre

They would restore manufacturing, force trade barriers to be taken down, and allow new industries to be created. There have been various different explanations for why President Trump’s new tariff regime made sense. And yet when they were finally revealed yesterday one point was clear. There was no logic. The tariffs were just weird. The

The minimum wage is too high

Council tax is going up. Train fares are rising. Broadband will cost more, and so will electricity and water. April opens with a blizzard of price rises that will make it far harder for everyone to make ends meet, especially if they are on a low income. The one compensation is that the minimum wage

Starmer’s costly failure to get a Trump tariff carve-out

The UK should have been doing everything possible to secure an exemption from Trump’s tariffs. We could have scrapped the digital services tax that is largely levied on the American tech giants. We could have opened our agricultural markets – even to chlorinated chicken. Heck, we could have offered President Trump his own apartment in

Give holiday home owners a break

If you have had your eye on a bungalow along the Devon coast, a cottage in the New Forest, or a tastefully painted terrace in one of the sea-facing villages in Norfolk, this could be your moment. Many holiday home owners are choosing to sell up to avoid a hike on council taxes. From next

Who’s going to miss WH Smith?

WH Smith is opting for the oldest trick in the corporate playbook. It is changing its name. It might have been better to get some new carpets – or at least to freshen up some of the display counters. As the chain’s high street shops are sold off, they will be rebranded as TG Jones,

If Bailey won’t call for radical growth reforms, no one will

It was hardly the message Chancellor Rachel Reeves would have been looking for a day before a Spring Statement which could well make or break her political career. The Governor of the Bank of England, Andrew Bailey, delivered a speech yesterday warning that growth was going to prove very hard over the next five years.