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Messages - NadiaWits

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1
UK inflation: which goods and services have changed most in price?

From milk to pasta and bicycles to vet bills, how the cost of everyday things variesUK inflation falls to 3.4% in February to lowest level for two and a half yearsThe fight against UK inflation is being won – but when will interest rates be cut?Business live – latest updatesThe UK’s annual inflation rate fell to 3.4% in February amid a slowdown in food and restaurant price rises.The Office for National Statistics compiled the overall reading using the consumer prices index but also logs prices for individual goods and services. Here we look at how the cost of many of those everyday items has changed over the past year. Continue reading...

Source: UK inflation: which goods and services have changed most in price?

2
Rachel Reeves: Treasury will ‘hardwire’ growth into tax and spending decisions

Shadow chancellor to outline plans to shake up department after Labour election victoryThe Treasury under a Labour government would “hardwire” raising Britain’s growth rate into its budget tax and spending decisions as part of plans to shake up Whitehall’s most powerful department, Rachel Reeves is to announce.The shadow chancellor will use a lecture in London on Tuesday to say that a decade of national renewal must start with “day one” reform after a Labour election victory to make growth more pivotal to the Treasury’s work. Continue reading...

Source: Rachel Reeves: Treasury will ‘hardwire’ growth into tax and spending decisions

3
China may be facing too many economic obstacles to hit its ambitious growth target for 2024

Fighting deflation, a sinking property market and weak internal demand, Beijing has set itself a challenging goal in 2024Chinese leaders who have been predicting an end to the country’s deflation would have been heartened by official statistics this week showing consumer prices had increased for the first time in six months.The news came as the ruling Communist party used its annual gathering in Beijing to declare the economy would clock up growth of “around 5%” in 2024. However in his speech, Premier Li Qiang warned dutiful delegates they “should not lose sight of worst-case scenarios and should be well prepared for all risks and challenges”. Continue reading...

Source: China may be facing too many economic obstacles to hit its ambitious growth target for 2024

4
The Guardian view on supply chains: not only just in time, but just in case | Editorial

Countries are placing a higher priority on resilience and security in the wake of the pandemic and as tensions growIn 2012, shortly before becoming China’s top leader, Xi Jinping visited the Port of Los Angeles to discuss boosting trade. What then looked like a locus of cooperation has now become another site for suspicion as Sino-American relations remain tense. Last month, the Biden administration announced $20bn of funding for port infrastructure, much of it to replace cargo cranes that have almost all been made by a state-owned Chinese firm. The US is concerned because the sophisticated pieces of equipment manage information about containers and their contents, their origins and their destinations – and can be remotely programmed and controlled. It wants to restart domestic production of the cranes, which have not been made in the US for decades.The move comes amid a much broader economic rethinking: what the EU foreign affairs chief, Josep Borrell, last year described as “a paradigm shift from the primacy of open markets to the primacy of security; from ‘just in time’ to ‘just in case’”. The pandemic was a wake-up call, forcing nations to scrutinise their supply chains, and ask whether they had sacrificed resilience for efficiency. The climate crisis is already affecting logistics: low rainfall in Panama has forced the authorities to limit vessels using the canal. Cyber-attacks by criminal actors are another concern. The Japanese port of Nagoya was put out of action by a ransomware attack last summer. But current conflicts and geopolitical divides are driving the changes. Continue reading...

Source: The Guardian view on supply chains: not only just in time, but just in case | Editorial

5
‘It won’t shift the polls’: Tory MPs rue budget that lacked pre-election pizzazz

Headline cut to national insurance rate echoes measure taken in autumn statement, which made little impact on votersJeremy Hunt has spent weeks managing expectations over potential tax cuts in his spring budget, with Tory MPs desperately searching for ways to avoid election defeat as household finances buckle under a record tax bill and the cost of living crisis.As the chancellor’s fiscal headroom shrank in the run-up to the budget, so did his plans for spending in areas such as housing and defence, as he promised he would not “take any risks” with the British economy despite all the political pressure. Continue reading...

Source: ‘It won’t shift the polls’: Tory MPs rue budget that lacked pre-election pizzazz

6
Wednesday briefing: What’s in Hunt’s spring budget – and how will he pay for it?

In today’s newsletter: As the chancellor presents a plan aimed at satisfying the Tory faithful, we look at what he will do and what it will mean for you• Sign up here for our daily newsletter, First EditionGood morning, and strap on your Homer Simpson secret nap spectacles: it’s budget day. Coming into this one, the big question about Jeremy Hunt is this: is he, as friends of his recently told the FT, “realistic enough to know he is unlikely to be chancellor this time next year” – or does he think that his decisions today can give the Conservatives a serious chance of winning the election? Does he want to bolster his economic legacy – or give his many vulnerable backbenchers something to tell voters about?The truth is likely to be somewhere in the middle: tax cuts to satisfy the Tory faithful, with just enough cover on affordability to keep fiscal watchdog the Office for Budget Responsibility (OBR) happy. Today’s newsletter is a simple guide to what that means: what the chancellor will do, the dubious sums that will help him afford it, and what it’ll mean for you. Here are the headlines.US politics | Joe Biden and Donald Trump cruised to easy victories on Super Tuesday, as both men piled up delegates on their way to their parties’ nominations for the presidency. While Nikki Haley did win the Republican primary in Vermont, that was her only success against Trump, and she came under renewed pressure to drop out of the race.Birmingham | Councillors in Birmingham have approved what are thought to be the biggest budget cuts in local authority history. 600 council jobs are under threat, with libraries closed, bin collections reduced, street lights dimmed, and arts grants scrapped. The council also approved a 10% council tax increase for the upcoming financial year.Israel-Gaza war | Negotiations aimed at brokering a ceasefire in the Israel-Gaza war appear to have stalled, days before an unofficial deadline of the beginning of Ramadan. Israel did not send a delegation to the second day of talks in Cairo as hoped, demanding that Hamas present a list of hostages who would be the first to be released.UK politics | Michelle Donelan, the science minister, has apologised and paid damages after accusing two academics of “sharing extremist views” and one of them of supporting Hamas. Donelan – whose department covered the damages and legal expenses – had faced a libel action after her allegations led to the two academics’ suspension from roles at Research England.Monarchy | The army has removed a claim on its website that the Princess of Wales will attend an event in June, after apparently publishing the information without approval from Kensington Palace. Catherine has been recovering from abdominal surgery for the past seven weeks, with no date yet given for her return to public duties. Continue reading...

Source: Wednesday briefing: What’s in Hunt’s spring budget – and how will he pay for it?

7
Don’t sit at home mourning the loss of Britain’s nightclubs – go out and rave | Dan Hancox

Our nightlife isn’t universally suffering. What it needs is participation, not elegiesHaving fun is big business. Without the factories and mills that first drew hundreds of thousands to towns and cities, today’s modern metropolis is expected to sustain itself and its residents through the manufacturing of leisure and the commodification of a good time. The zeitgeist phrasing is telling: the night-time is now its own economy – one worth an estimated £66bn in the UK. Cities are no longer expected to sleep – sleep is wasted consumption time, after all. But from nightclubs to pubs and restaurants, the story being told about British nightlife is clear: it is in deep trouble.A report published this month by the Night Time Industries Association (NTIA) looked into the economic and cultural impact of electronic music in Britain, and found that – while it is thriving on digital platforms, at festivals and in terms of global impact – the bricks-and-mortar world of clubland is in crisis. And what is dance music without any dancefloors?Dan Hancox is a freelance journalist, focusing on music, politics, cities and culture. His new book, Multitudes: How Crowds Made The Modern World, is published later this year Continue reading...

Source: Don’t sit at home mourning the loss of Britain’s nightclubs – go out and rave | Dan Hancox

8
China needs to do more on ‘silent crisis’ of debt, says World Bank official

Beijing must be more ready to support countries facing distress, says deputy chief economistChina holds the key to speeding up debt relief and ending the “silent crisis” that is holding back attempts to tackle poverty in the world’s poorest countries, a senior World Bank official has said.Ayhan Kose, the Bank’s deputy chief economist, said Beijing needed to be more active in negotiations to provide financial support for those countries already in, or close to, debt distress. Continue reading...

Source: China needs to do more on ‘silent crisis’ of debt, says World Bank official

9
The Tories’ tax plans are absurd. When will Labour be brave enough to say so? | William Keegan

Pre-election giveaways funded by yet more austerity will push the welfare state the opposition created towards ruinAs a longstanding observer of the British economy, I sympathise with the general reader trying to make sense of recent reports on what is happening to it.One week he or she is told that inflation is falling; another week that it isn’t. One week we are reliably informed that interest rates are going to be reduced; the next that they are not. One week there is no danger of falling into recession. The next week we are informed that we are already in one. Continue reading...

Source: The Tories’ tax plans are absurd. When will Labour be brave enough to say so? | William Keegan

10
The Guardian view on the UK recession: no growth and no ideas either | Editorial

The Conservatives have presided over a shrunken British economy, and Rishi Sunak does not have a clue how to make it grow again“We’re on the up!” claimed the Daily Express about the British economy on Thursday . Sorry, loyal Conservative cheerleaders, but exactly the reverse is true. Instead of being on the up, we’re on the slide. On Thursday, the Office for National Statistics announced that the UK is in fact in recession, with a 0.3% drop in gross domestic product for the last quarter of 2023 to follow a 0.1% drop in the third quarter. The economy is therefore getting smaller. This is a recession. It is a huge national blow, both economically and politically.It is true that the slide into recession has been a gentle one. Few economists believe that the announcement portends a downward lurch to compare with the recession of 1980 or the one after the financial crisis in 2009, when GDP fell by more than 4%. Do not, though, be misled by talk of a “technical” recession. An economy is either growing or it is not. Ours is not growing. It is shrinking. Continue reading...

Source: The Guardian view on the UK recession: no growth and no ideas either | Editorial

11
The Body Shop UK falls into administration; UK wage growth and US inflation hit rate cut hopes – as it happened

The Body Shop has collapsed into administration in the UK, less than three months after it was taken over by a private equity companyThe Body Shop collapses into administration in UK‘Scent of a generation’: the Body Shop products consumers lovedAnalysts at Nomura predict the Bank of England could resist cutting UK interest rates until this summer.They say this morning’s labour market data was stronger than expected, adding:Although BoE governor Bailey said that March was live for cuts, we think stronger- than-expected wage growth and a still tightening labour market support the Bank cutting only in August.December wage growth was stronger than expected, with upward revisions to the November print. The unemployment rate declined, compared with forecasts for a rise. Continue reading...

Source: The Body Shop UK falls into administration; UK wage growth and US inflation hit rate cut hopes – as it happened

12
Dover Port health body fears gangs of meat smugglers looking to bypass new post-Brexit checks

Authority weighs up legal action against government over new checks on imported meat taking place 22 miles inlandThe Port of Dover could become a target for criminals smuggling illegal and diseased meat into the country under new post-Brexit plans that will involve lorries from the continent being checked 22 miles inland, the port’s health authority has warned.The Dover Port Health Authority (DPHA) is now considering legal action against the government over its decision to end physical checks of imported meat at a post within the port. Instead, lorries will be directed to a new checking facility half an hour’s drive up the M20 at Sevington, Ashford. Continue reading...

Source: Dover Port health body fears gangs of meat smugglers looking to bypass new post-Brexit checks

13
Lloyds and Santander accused of providing accounts for Iranian front companies

Both banks deny helping Tehran-controlled oil firm PCC to move money in breach of sanctionsTwo of the UK’s largest lenders, Santander UK and Lloyds Banking Group, allegedly held bank accounts for front companies that helped Iranian entities evade US sanctions, according to reports.The news has rattled investors, who sold off shares in the two banks on Monday morning, amid fears that the lenders could face penalties if they are found to have in any way assisted Iran’s state-controlled Petrochemical Commercial Company (PCC). Continue reading...

Source: Lloyds and Santander accused of providing accounts for Iranian front companies

14
Will the ‘sick man of Europe’ label stick to Germany this time around?

Its growth model seems kaput – but optimists point to how the economy confounded critics beforeGermany is struggling. Its economy has shown no growth in the best part of two years. Its infrastructure is badly in need of modernisation. There are strikes on the railways. Protesting farmers have brought Berlin to a standstill. Deutsche Bank is cutting thousands of jobs. School standards are slipping. There is growing support for parties of the hard left and hard right. For the second time in a quarter of a century it is being labelled the sick man of Europe.Germany has a history of economic problems breeding political extremism but talk of a return to the Weimar Republic is  Earnings-price ratioly overblown. The economy is flatlining, not collapsing. There is nothing to match the hyperinflation of 1923 or the mass unemployment of the early 1930s. Continue reading...

Source: Will the ‘sick man of Europe’ label stick to Germany this time around?

15
UK risks steep decline without £28bn green economy pledge, Labour warned

Business leader says investment in low-carbon economy is ‘absolute minimum’, a view echoed by other expertsWhat is Labour’s £28bn green plan – and could it be shelved?Labour’s proposed investment of £28bn a year in the low-carbon economy is an absolute minimum, a leading business figure has said, adding that without green investment on that scale the UK will face steep decline as a result of crumbling infrastructure and stagnating industry.Jürgen Maier, the former UK head of Siemens, the German industrial giant and major investor, said massive investment was needed to rebuild the UK economy and make it fit for the future, and that it should concentrate on low-carbon energy, transport and industry. Continue reading...

Source: UK risks steep decline without £28bn green economy pledge, Labour warned

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