Category Archives: Economics

EU27 rule out UK's preferred approach to future trade deal

‘Three basket approach’ would breach agreement to prevent cherry-picking, says Brussels

The EU has ruled out the UK government’s preferred approach to a future trade deal, describing it as a risk to the European project, just as Theresa May is seeking to strike an agreement on the way forward within her cabinet.

The inner cabinet is meeting at Chequers on Thursday to try to find an agreement among warring cabinet members on an approach sketched out to ministers by the prime minister’s Brexit adviser, Olly Robbins.

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Source: gad

For South Africa's new president the only way is up | Larry Elliott

Jacob Zuma scandals dragged down the economy. Now Cyril Ramaphosa has the chance to unleash a regional superpower

Timing matters a lot in determining political success. Gordon Brown could hardly have become prime minister at a worse time because in the summer of 2007 the UK economy had been growing for 15 years, the financial crisis was just around the corner and the only way was down.

For Cyril Ramaphosa, by contrast, the only way is up. The new South African president has taken over an economy that should be a regional superpower but has been seriously underperforming in recent years. The growth rate has been on a downward trend since the initial bounce back from the “great recession” and is close to zero. Unemployment is above 25% and the poverty rate is higher than in other large emerging market economies.

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Source: gad

The story of Mr Sudhir: how to survive in Delhi's 'grey market'

When sociologist Richard Sennett was fleeced by an iPhone dealer in Delhi, the pair struck up a friendship that opened a window into the informality of modern cities

In the south-east of Delhi, a vast T-shaped market has arisen on top of an underground parking garage.

Nehru Place came into being because in the 1970s Delhi did not have enough commercial real estate to house its burgeoning small businesses. Original plans show the plaza above the parking garage as empty, and lined with low, four-storey buildings meant for offices rather than shops. Today, there remain traces of that intention. The boxy buildings lining the sides of Nehru Place form a downmarket version of Silicon Valley. Here, tech startups occupy cramped rooms next to computer repair shops and cut-rate travel agents.

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Source: gad

Goldman Sachs boss on Trump tax plan: 'Odds of a bad outcome have gone up'

Lloyd Blankfein warns that Donald Trump’s $1.5tn tax cut plan could over-stimulate an already healthy economy

The Goldman Sachs boss, Lloyd Blankfein, has added his voice to the chorus warning that Donald Trump’s $1.5tn tax cut and spending plans could lead to an overheated US economy.

“The odds of a bad outcome have gone up,” Blankfein told CNN on Wednesday.

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Source: gad

Trump pledges to fix US infrastructure but $200bn plan falls well short

  • Funds represent a fraction of the trillions engineers say is needed
  • Trump likely to face opposition from Democrats and Republicans

Donald Trump is to unveil a $200bn plan to fix America’s crumbling infrastructure – a plan that falls woefully short of the trillions civil engineers say is needed to rebuild the country’s tattered backbone and is likely to face intense opposition from Democrats and Republicans.

The proposal would earmark $200bn in federal funds aimed at encouraging states, cities and private enterprise to rebuild the nation’s dams, roads, bridges, airports and other essential infrastructure. The aim is to encourage $1tn of extra investment.

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Source: gad

US stocks drop then rise again as wild ride continues

  • Dow Jones plunges 200 points before ending up 300
  • Index fell 5% over week in one of biggest drops since recession

US stock markets continued their wild ride on Friday, ending one of the most volatile weeks in trading since the financial crisis as international stock markets continued to fall, spooked by fears of more rapidly rising interest rates.

The Dow Jones Industrial Average, which lost more than 1,000 points on Thursday, rose 30 points on Friday morning as the more broadly based S&P 500 and the tech-heavy Nasdaq also moved into the black only to shortly lose those gains. By noon the Dow was down over 200 points and then rallied to end up over 300 points.

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Source: gad

Making millions from chaos: the fund cashing in on the stock market collapse

Texas hedge fund Artemis plucks millions from investments designed to benefit from turmoil and volatility

Stock markets gyrated wildly this week, and a lot of people lost a lot of money. But Chris Cole, a 38-year-old hedge fund manager from Texas, wasn’t one of them. He made millions from his fund’s bet on a financial apocalypse.

From his office overlooking the Colorado river in Austin, Texas, Cole runs Artemis Capital, a hedge fund that, since 2012, has been betting on a repeat of the 1987 Black Monday stock market crash.

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Source: gad

Bitcoin: what have experts said about the cryptocurrency?

The most memorable comments on the cryptocurrency from senior figures in world finance

•ECB official backs bitcoin clampdown

Bitcoin’s gyrations have attracted a lot of attention over the past year. Here are some of the most memorable comments from senior figures in world finance.

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Source: gadt

ECB official backs bitcoin clampdown

Yves Mersch joins growing list of experts calling for restrictions on cryptocurrencies

• What the experts have said about bitcoin

A top European Central Bank policymaker has joined calls for a global clampdown on virtual currencies such as bitcoin because of their threat to financial stability.

Yves Mersch, a member of the ECB’s executive board, said the central bank shared the views voiced by Agustín Carstens, the head of the Bank for International Settlements, who on Monday condemned bitcoin as “a combination of a bubble, a Ponzi scheme and an environmental disaster”.

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Source: gadt

'We're all competing for the same jobs': life in Britain's youngest city

The 30% of Bradfordians under 20 face a perfect storm of problems, from youth unemployment to racial tension. But many of them insist it’s not all doom and gloom

When it comes to grim urban statistics in Britain, the city of Bradford tops many lists. Police statistics name Bradford as having the highest crime rates in West Yorkshire, while a 2014 YouGov poll named it Britain’s “most dangerous city”. Bradford also has one of the highest levels of youth unemployment in the UK: 26% of young people were out of work in 2015, up from 11.3% in 2004.

What makes these statistics particularly troubling, however, is the one that ties them all together. More than 30% of the population here are currently under the age of 20, and the city has the highest number of under-16s in the country, giving Bradford the unusual title of being the UK’s youngest city.

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Source: gad