The UK government’s long-term borrowing costs jumped to their highest level since early 1998 on Tuesday as a global bond sell-off gathered pace.
The yield – in effect the interest rate – on 30-year UK government bonds, known as gilts, hit 5.89% as traders fretted about a fresh increase in oil prices driving up inflation.
Former PM announces he will no longer represent Holborn and St Pancras on the day his successor, Andy Burnham, is to give first Commons address as prime minister
My colleague Richard Partington, the Guardian’s senior economics correspondent, grew up, like Andy Burnham, in the Warrington suburb of Culcheth. He has been home to find out what people there are saying about the new PM.
Yesterday, Kemi Badenoch announced a reshuffle, replacing Mel Stride with Andrew Griffith as shadow chancellor and Priti Patel with Tom Tugendhat as shadow foreign secretary.
We send our love and support to the Jewish community in Manchester and beyond who last night gathered to remember Melvin Cravitz and Adrian Daulby, who were killed defending their synagogue last year. My thoughts are with their families and all those who have been affected by the attack.
I know for many Jewish people, the sorrow and fear from that day has not lifted and I know we must do more to protect communities across the country.
Britain is poorer than we often think. We won’t get richer based on higher public spending alone, and we can’t tax billionaires who don’t live here.
We shouldn’t rely on public spending as a route to some romantic version of making Britain great again as we look in the rearview mirror for a great history that is no longer available to us. We must face the future, and I know my colleagues are up to the challenge.
Crucially, we must create the right conditions for a dynamic, thriving market. This includes getting ahead of what artificial intelligence will mean for our services-dominated economy.
Politically, we shouldn’t see conflict between growth and fairness, or business and workers, or the market and the state. These are false choices.
In-store inflation rises to an annual 1.5% in August, according to a survey for the British Retail Consortium
The pace of price rises in UK shops rose to its highest level in two years in August, a trade body index shows, with higher energy costs pushing up the price of food and AI chip demand making technology more expensive.
In-store inflation stepped up to 1.5% year on year in August, up from 0.9% in July, led by prices for tinned and packaged food which increased by 2.5% against 1.1% in the prior month, according to data from the research company NIQ for the British Retail Consortium.
Trump’s Operation Economic Outcast is expected to push many Iranians into deeper poverty as food inflation soars
For many Iranians, the new US sanctions campaign, called Operation Economic Outcast, seems superfluous given the grim economic situation in their country.
Iranians are facing runaway food inflation, closed petrol stations and a seemingly never-ending depreciation of the nation’s currency caused by a lack of foreign exchange reserves.
Trump’s Operation Economic Outcast is expected to push many Iranians into deeper poverty as food inflation soars
For many Iranians, the new US sanctions campaign, called Operation Economic Outcast, seems superfluous given the grim economic situation in their country.
Iranians are facing runaway food inflation, closed petrol stations and a seemingly never-ending depreciation of the nation’s currency caused by a lack of foreign exchange reserves.
US trade representative Jamieson Greer has a level-headed reputation but commerce secretary Howard Lutnick and White House adviser Peter Navarro also have key roles
Having reportedly read Victor Hugo’s Les Misérables, in French, during a military tour of duty in Iraq, Jamieson Greer considered himself an unlikely target for accusations of francophobia.
But Donald Trump’s US trade representative, hitherto one of the president’s less high-profile cabinet members, found himself in that uncomfortable position amid the acrimonious collapse of bilateral trade talks with Canada that now threatens to degenerate into an all-out trade war between the two close trading partners whose economies are tightly intertwined.
With traditional goals such as stability and home ownership feeling out of reach, young people are focused on the present
By now, we all know the shape of financial nihilism: the throw-your-money-at-anything reaction to the dissolution of the slow, linear path to wealth; the prediction markets, meme stocks, cryptocurrencies and microluxuries growing in its place. We’re left in an economic no man’s land. But financial nihilism only describes where we put our money. What about how we earn it in the first place?
The modern economy has long relied on our need for stable employment – to pay the mortgage, to keep our kids fed, or, for some, to chase prestige and power – to generate the work ethic that keeps the wheel of production turning. None of this is going well for young people. Our jobs are insecure, we can’t afford houses, we’re deferring having kids (if we have them at all), and only 6% of us say a leadership position is our primary career goal. Hope is one of the economy’s most productive inputs, powering our willingness to endure long hours. When the production function of income – the mechanism that turns hard work into a stable salary, then a mortgage, then a pension – breaks down, so does our relationship with the input. I call this production nihilism: my generation’s growing indifference to the kinds of work we’re willing to participate in, and where we’re willing to earn.
Global crises are tightly linked to how we treat each other at the local level, argues this optimistic book
In times of crisis, there is one person to whom the left still turns for guidance.
More than a decade and a half after leaving government, Gordon Brown has mellowed into the Labour party’s favourite wise elder; one who has never disappointed the faithful by going off to make a ton of money, remaining quietly committed to public service and deeply engaged with the world’s knottier problems. Having successfully led the global response to the financial crash of 2008, and advocated powerfully during the pandemic for global cooperation against the virus, he was never going to simply sit back and shrug as the world spiralled into conflict and chaos under Donald Trump.
Andrew Bailey, in role as financial stability watchdog chief, warns advanced models risk destabilising system
The Bank of England’s governor, Andrew Bailey, has joined the throng of figures warning about the global risks posed by the most advanced artificial intelligence technology.
In a two-page letter sent to international finance ministers and central bank governors as part of his role as chair of the international Financial Stability Board (FSB), Bailey said “frontier” AI models were “showing increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities”.
Centre for Economics and Business Research calculates effect of inflation and wage stagnation to end of 2027
UK households will have suffered a £2,400 financial hit, on average, from the Iran war by the end of 2027, new analysis shows.
The Centre for Economics and Business Research (CEBR) has calculated that the jump in inflation since the conflict began, and weaker wage growth, will knock £1,100 off the real income of the average UK household in 2026, and by a further £1,300 in 2027.
Project in Zambia shows how teaching young women to negotiate better can have a long-term impact on their prospects
Women making their way in patriarchal societies down the ages have always had to wield their meagre economic power deftly. New evidence from a fascinating research project in Zambia suggests that’s a skill that can be learned.
A team of female US academics have been gathering data for more than a decade, which shows that teaching young women to negotiate better can have a long-term impact on their prospects.
There’s little optimism about treasury secretary’s ability to handle Trump’s tariffs, Iran sanctions and colossal US debt
History remembers Gen Dwight Eisenhower, the supreme commander of the allied forces in Europe during the second world war, for his role in the D-day invasion of Normandy. Whether Scott Bessent will achieve similar posterity as the face of the “economic D-day” in Iran remains to be seen.
The US treasury secretary, already trying to manage a $40tn national debt pile, this week took charge of Donald Trump’s effort to reverse-engineer his war of choice. Whereas the US would typically take on an adversary with diplomacy, sanctions and military force, in that order, the US president started with a six-month bombing campaign and now hopes that economic isolation can finish the job.
Avoiding US goods and services – from tech to whisky to air travel – has forced many to find a new way of living
For William McDonald, 38, a diesel mechanic from Thunder Bay, Ontario, “Canadian is always the first choice,” even if it means his weekly bills are higher.
“As soon as Trump started putting those tariffs on in February [last year], I started boycotting US goods,” he said. “Avoiding American products has driven my costs up, and I’m still happy to do it.
However, Kevin Warsh didn’t say if interest rates would change in coming months, as inflation remains stubborn
The US Federal Reserve is not done fighting high inflation, its chair, Kevin Warsh, said in his first major speech in the role on Friday, emphasizing that it was “the Fed’s job to deliver stable prices”.
Warsh did not indicate where the Fed will take interest rates in the coming months, despite US inflation remaining stubbornly above the central bank’s 2% target amid the war in Iran. But his speech was taken by markets as a signal that rates may rise in the coming months, a move that may put him at odds with Donald Trump, who has aggressively called for rates to be cut.
Unpopular new policy comes as midterms loom and control of Congress could be decided by several Michigan races
Every day $1bn worth of goods crosses the river dividing Detroit, Michigan, and Windsor, Ontario, two largely blue-collar US and Canadian cities that have come to act as one in the creation of North America’s auto industry.
News this week of Donald Trump’s escalating trade spat with Canada has everyone worried. Political and economic leaders and observers labeled the move an act of “hubris” , blamed Trump’s “ego”, and called the escalation “insanity”.
Unpopular new policy comes as midterms loom and control of Congress could be decided by several Michigan races
Every day $1bn worth of goods crosses the river dividing Detroit, Michigan, and Windsor, Ontario, two largely blue-collar US and Canadian cities that have come to act as one in the creation of North America’s auto industry.
News this week of Donald Trump’s escalating trade spat with Canada has everyone worried. Political and economic leaders and observers labeled the move an act of “hubris” , blamed Trump’s “ego”, and called the escalation “insanity”.
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