The ECB has repeatedly argued that consumer spending would increasingly support growth, against a backdrop of slowing inflation and rising real incomes, and it’s likely to take the news as vindicating that argument. At the national level, Germany, Spain and France posted better-than-expected growth, while Italy’s came in below expectations. Ireland performed best, growing 2 … Read more
“We have three main policy recommendations,” Koeva-Brooks said, highlighting that the first is “for central banks to pivot towards providing more support to activity where inflation is under control.” By contrast, she added that governments should tighten fiscal policy to draw a line under the emergency measures of the pandemic years, as well as enacting … Read more
But in her next breath she warned that now isn’t the time for victory laps. Ever-rising debt levels and the splintering of global trade under the pressure of geopolitical rivalries have cast a long shadow over the meetings, which begin in earnest Tuesday. The uncertainty is only fueled by the wars raging in both Eastern … Read more
Bank of England Governor Andrew Bailey hit back against former U.K. Prime Minister Liz Truss, saying her downfall was caused by her decisions and those of her team, rather than any “deep state” conspiracy. “I don’t know what she means by that,” Bailey told the Guardian in an interview published on Thursday. “I’ll say this … Read more
It marks the latest doubling-down from Truss on her free-market agenda — and comes as the Tory Party she once led tries to shrug off a hefty election defeat under her successor Rishi Sunak and pick a new leader. Truss argued that the mini budget, which offered a host of tax cuts and supply-side reforms … Read more
The German ZEW sentiment index on Tuesday painted a dire picture, with the assessment of the current situation now almost as bad as it was at the beginning of the Covid pandemic in spring 2020. ZEW head Achim Wambach said “the hope for a swift improvement in the economic situation is visibly fading.” For Centeno, … Read more
The U.S. Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market. “The committee has gained greater confidence that inflation is … Read more
Consider Venice. Union leaders say the chains — which include such giants as Hilton Worldwide Brands and Star Hotels and have significant influence over two of the Veneto region’s most powerful employers’ federations — have refused their demands for higher wages since 2018, regularly derailing talks at the 11th hour to push for concessions that … Read more
Canada’s economy shed 2,800 jobs in July while the unemployment rate was unchanged at 6.4 per cent, Statistics Canada said on Friday. Employment fell in wholesale and retail trade, which shed 44,000 jobs, and in finance, insurance, real estate, rental and leasing, which shed 15,000 jobs. Public administration, transportation and warehousing, and utilities saw jobs gains. … Read more
“Today’s cut will be welcome news for millions of homeowners and shows that Labour inherited a stronger economy which was on the right track,” crowed Shadow Chancellor Jeremy Hunt, attacking Reeves for agreeing to new public sector pay rises. “In government, we took difficult decisions that cut inflation from 11.1 per cent to the Bank’s … Read more
