Economics

China’s economy beats forecasts as stimulus offsets trade war damage – business live | Business – Business Article

Replicas of “Longevity” lanterns are seen in front of the Qianqing Palace in the Forbidden City in Beijing, China, this month. Photograph: China Stringer Network/Reuters Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. China has batted away concerns that its economy is faltering, by posting better-than-expected growth figures. Despite the pressure of Donald Trump’s trade war, the Chinese economy grew at an annual pace of 6.4% in the first…

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UK pay grows at fastest rate since financial crisis – ONS | Business – Business Article

Pay growth in Britain has risen at the fastest rate in more than a decade, as companies keep hiring despite growing fears over Brexit. Average weekly earnings, including bonuses, rose by 3.5% on the year in the three months to February, according to the Office for National Statistics, matching the rate recorded in January and the joint highest level since mid-2008. Basic pay increased by 3.4% on the year, down from an upwardly revised 3.5% in the three months to…

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Not enough babies? Not enough state support for families | Business – Business Article

When a baby is conceived there are usually three parties involved, and one of them is the government. Without financial and other kinds of support from the state, people are more reluctant to have children, according to official statistics. It’s a phenomenon seen across the developed world since the 1990s, when direct state intervention appears to have taken over from a more general sense of economic wellbeing as the main driver of procreation. In the UK, the birth rate clearly…

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Hammond plays down Brexit delay increasing chance of second vote | Politics – Business Article

Philip Hammond has played down the possibility that the UK could use the delay to Brexit to hold a second referendum and stressed that he still expects Britain to leave the European Union. Speaking in Washington, the chancellor said time would be too tight to hold a confirmatory vote before the new deadline of the end of October unless it was triggered over the coming weeks. Hammond said the damage caused by continued uncertainty – including problems attracting suitable candidates…

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China’s trade with US slumps as tariff war hits demand – business live | Business – Business Article

8.59am BST 08:59 In another sign of economic weakness, car sales in China fell by 5.2% year-on-year in March. That’s follows a 13.8% slide in February, and means auto demand has been dropping since last summer. Henning Gloystein (@hgloystein) #China‘s #car sales fell 5.2% in March, marking the 9th straight month of decline in the world’s largest auto market. energy vehicle (NEV) sales however, which include #ElectricVehicles, soared by 85.4%… #Reuters #OOTT April 12, 2019 8.47am BST 08:47 Customs spokesman…

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Millennials being squeezed out of middle class, says OECD | Business – Business Article

Millennials in advanced economies around the world are being squeezed out of the ranks of the middle class, including in Britain, as pay growth stalls and house prices skyrocket, according to the OECD. The Organisation for Economic Co-operation and Development (OECD) said that for every every generation since the baby boom of the 1940s, across 40 major countries, the middle-income group had shrunk and its economic influence weakened. The Paris-based organisation, which represents 36 wealthy nations around the world, but…

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UK economy ‘stronger than expected’ in February thanks to Brexit stockpiling – business live | Business – Business Article

“Despite ongoing uncertainty over Brexit, the UK economy held up relatively well in February, with GDP growth of 0.2% compared to January. Services continued to grow at a moderate pace, while manufacturing output seems to have been boosted to some degree by pre-Brexit stockpiling since January. The underlying trend over the past three months has been for GDP growth at an annualised rate of just over 1%. This is below trend and well down on the buoyant growth rates seen…

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IMF says no-deal Brexit risks two-year recession for UK | Business – Business Article

Britain’s already struggling economy would be pushed into a two-year recession by a no-deal Brexit, the International Monetary Fund has warned. Ahead of Theresa May’s plea to EU leaders for a further delay to Britain’s departure, the IMF used a downbeat half-yearly assessment of the global economy to predict that the UK economy could be 3.5% smaller than expected by 2021 if trade barriers were swiftly erected. The World Economic Outlook – completed in March before the latest developments in…

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La dolce vita slips away again as Italy tumbles back into recession | Business – Business Article

Sharing his predictions on the economy less than a month ago, Luigi Di Maio, the Italian deputy prime minister, believed the country was on the cusp of an economic miracle akin to the one enjoyed in the 1960s. “During that period we built highways, now we can build digital highways,” he enthused. His comments were met with derisive laughter. There was even less to laugh about on Thursday when figures revealed that Italy, which is saddled with a public debt…

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Why record job growth in America hides a troubling reality | Business – Business Article

January marked the 100th consecutive month of job creation in the United States – a record breaking streak of job creation that has left employers scrambling to find workers and dragged the long-term unemployed back into the market. Yet even now, 20m jobs later, there are some parts of the US economy that have yet to reflect the positive image projected by the continuous job growth and low unemployment rate. “That we’ve had the unemployment rate at or below 4%…

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China manufacturing disappoints ahead of US jobs data – business live | Business – Business Article

3.30am EST 03:30 One in three UK firms plan for no-deal relocation One in three UK firms are planning to relocate some of their operations abroad in the event of a no-deal Brexit, according to a survey by the Institute of Directors. The lobby group says 29% of firms in a survey of 1,200 members had either already moved part of their business or were planning to do so in response to threat of a hard Brexit. Edwin Morgan, the…

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UK wages worth up to a third less than in 2008, study shows | Business – Business Article

Wages are still worth a third less in some parts of the country than a decade ago, according to a report. Research by the Trades Union Congress (TUC) found that the average worker has lost £11,800 in real earnings since 2008. The UK has suffered the worst real wage slump among leading economies, the union organisation said. The biggest losses have been in areas including the London borough of Redbridge, Epsom and Waverley in Surrey, Selby in North Yorkshire and…

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UK consumers shun credit cards as Brexit looms – business live | Business – Business Article

French riot police clash with Yellow Vests protesters at the Place de la Bastille Photograph: Alfred Photos/SIPA/REX/Shutterstock Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. With gloom gathering over Europe, France has given the eurozone a much-needed boost by beating growth forecasts for the last quarter. French GDP expanded by 0.3% during October-December, new figures show, crushing fears that growth could have fallen to just 0.1%. That matches France’s…

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Huawei charges reignite trade war fears; Brexit hits Hargreaves Lansdown – business live | Business – Business Article

Acting Attorney General Matthew Whitaker announcing indictments against China’s Huawei Technologies Co Ltd, several of its subsidiaries and its chief financial officer Meng Wanzhou last night Photograph: Joshua Roberts/Reuters Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. Hopes of a breakthrough in the US-China trade talks have taken a resounding knock, after American authorities hit technology firm Huawei with a string of criminal charges. The US Justice Department has…

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Labour report urges investment to revive struggling regions | Business – Business Article

A future Labour government should use funds from a national investment bank, targeted transport spending and buying British as part of a long-term strategy to spread economic prosperity to the struggling regions, a specially commissioned report for the party has said. The report called for funding from the national investment bank – a key plank of the opposition’s economic strategy to be heavily skewed in favour of communities hard hit by the decline in manufacturing, with funding per head more…

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Davos 2019: Greta Thunberg says it’s time to panic about climate change – live | Business – Business Article

At an event where success is often measured by who’s seen at a reception or speaks on a panel, the Saudis aren’t getting the cold shoulder any more. James Gorman, the head of Morgan Stanley, spoke on Thursday in a debate alongside two Saudi ministers. And the likes of Jamie Dimon of JPMorgan Chase & Co. and John Flint of HSBC Holdings Plc attended the annual Davos party thrown by Saudi oil giant Aramco, according to a person present. “I…

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Philip Hammond urges business leaders to accept Brexit result | Business – Business Article

Philip Hammond has told business leaders they need to accept the result of Britain’s EU referendum and warned that a failure to implement it would damage the country’s political stability. The chancellor told increasingly restless business leaders that he was working for a deal that safeguarded the economy, and said he understood their frustration but companies had to accept that changes were coming – such as an end to the free movement of people and business models built on a…

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