Economy

Trump forces Brussels’ hand on trade despite tariffs backlash

Trump’s threat of auto tariffs has finally spurred EU leaders into action on a new trade deal with Washington. As the US president seeks reelection next year, will Europe hold more clout in upcoming negotiations? Nik Martin Deutsche Welle Nine months after European Commission President Jean-Claude Juncker rushed to Washington to stave off the prospect of US tariffs on European cars, the European Union signaled this week it was ready to restart trade talks with… EU leaders have been grappling with the ... Read More »

Deutsche Bank faces action over $20bn Russian money-laundering scheme

Exclusive: in confidential internal report seen by the Guardian, bank says scandal has hurt global brand Luke Harding The Guardian Germany’s troubled Deutsche Bank faces fines, legal action and the possible prosecution of “senior management” because of its role in a $20bn Russian money-laundering scheme, a confidential internal report seen by the Guardian says. The bank admits there is a high risk that regulators in the US and UK will take “significant disciplinary action” against it. Deutsche concedes that the scandal has ... Read More »

Poverty as a moral question: do we have the collective will to end it?

How did we get here, and why does Australia, allegedly the land of the fair go, fail to make progress on lifting the bottom 10% out of poverty? Gay Alcorn The Guardian Ronald Henderson, the chair of Australia’s only comprehensive inquiry into poverty, had what a friend called “an offended conscience”. His inquiry, whose main report was released a few months before the Whitlam government was dismissed in 1975, did as much as any single act before or after it ... Read More »

How we will rebuild trust in Irish banking

A new independent body will have a dedicated focus on banking culture John Hedigan The Irish Times Trust in the Irish banking system is at an all-time low. This is an unsustainable situation which damages not only the banking sector but the general public interest. To address this problem, banking culture in Ireland needs to change. For that change to be authentic and sustainable, it must come from within. If regulation were enough, the necessary change would have come about ... Read More »

China takes Australia’s Huawei 5G ban to global trade umpire

Beijing: China has complained to the World Trade Organisation about Australia’s ban on Huawei participating in the 5G network. Kirsty Needham WAtoday The complaint, made at a WTO meeting in Geneva on Friday, does not mention Huawei by name but refers to Australia’s “discriminatory market access prohibition on 5G equipment”, according to the meeting’s agenda seen by The Sydney Morning Herald and The Age. The complaint has been lodged with global trade umpire as the federal government has entered caretaker mode ahead of the ... Read More »

The outlook for the global economy goes from bright to precarious

The latest IMF report should provide sobering reading for both major parties ahead of the federal election Greg Jericho The Guardian The IMF has downgraded forecasts for economic growth across the world in its latest world economic outlook released this week. The report should provide sobering reading for both major parties ahead of the federal election as a substantial slowdown in the world economy could severely affect revenue forecasts and the ability to deliver spending commitments and tax cuts while also balancing ... Read More »

China’s ‘Fisherman Navy’ Surrounds Philippines’ Pag-asa Island

‘China is intimidating the nations of Southeast Asia into submission to its will. … Everything is headed in the direction of war.’ Nikoli Guillar theTrumpet Chinese fishing vessels swarmed Philippine-controlled Pag-asa Island in the Spratly Islands on April 4, in an “illegal” move that provoked Manila, Inquirer.net reported. On the day of the incident, Philippine President Rodrigo Duterte told China to “lay off” its vessels surrounding Pag-asa Island. “This is not a warning, this is a word of advice to ... Read More »

‘A Convenient Life and a Good Life May Not Be the Same Thing’

Margrethe Vestager, Europe’s top antitrust regulator, hasn’t been able to take down Big Tech—but she has a theory of how to tame it. Franklin Foer The Atlantic The election of Donald Trump, and the Cambridge Analytica scandal that followed, set in motion what some have called the tech-lash—a bout of intense skepticism directed toward Silicon Valley. But long before it became fashionable to jeer Mark Zuckerberg, there was the Danish regulator, Margrethe Vestager. As the European commissioner of competition, a ... Read More »

Trump’s Republican Base Is Wary of India

Core Trump supporters view trade deals as benefiting other countries at the expense of the United States. Pratik Chougule The National Interest The U.S. decision to remove India from the Generalized System of Preferences program last month, citing its lack of “equitable and reasonable” market access, was the toughest action of the Trump presidency against the country. It may also be a sign that a decade of growing U.S.-India partnership is entering a new normal with lingering economic and trade disputes taking ... Read More »

France, Spain and Belgium ‘ready for no-deal Brexit next week’

Chance of May getting 30 June extension appear slim after notes of EU meeting emerge Daniel Boffey, Jon Henley and Jennifer Rankin The Guardian France has won the support of Spain and Belgium after signalling its readiness for a no-deal Brexit on 12 April if there are no significant new British proposals, according to a note of an EU27 meeting seen by the Guardian. The diplomatic cable reveals that the French ambassador secured the support of Spanish and Belgian colleagues in arguing that there ... Read More »

The oil and gas of Lebanon tempts the appetite of its neighbours

With three fronts potentially encroaching on its oil and gas-rich waters, Lebanon has few options for international arbitration. TRTworld Lebanon has 95.9 trillion cubic feet of gas and 865 million barrels of oil in just 45 percent of its economic waters; enough to ignite the closed Mediterranean region. To the south, its neighbour Israel claims ownership of 860km of the exclusive economic zone of Lebanon, to the north Syria is drowning in war, then there is Cyprus, which is lost ... Read More »

Today’s Nationalism is Bad for Business

Multilateralism and global cooperation are under increasing threat, posing a serious risk to future prosperity. Business and finance leaders should care deeply about this state of affairs, so why aren’t they doing much more to help counter it? Lise Kingo , Scott Mather Project Syndicate NEW YORK – The system of international cooperation that emerged from the ashes of World War II is at risk. Multilateralism and the institutions that support it – including the World Trade Organization, the United ... Read More »

How to cure America’s debt addiction (and invest in the future)

Under current policies the federal debt will rise from 78% to almost 180% of U.S. GDP in three decades. William G. Gale and David Wessel Brookings In his new book, “Fiscal Therapy: Curing America’s Debt Addiction and Investing in the Future,” Brookings Senior Fellow William Gale explores policies to raise revenue, control spending, and increase public investments, and solve our debt problem. In this episode, Senior Fellow David Wessel interviews Gale about his new book and policy ideas. Also, Christen Linke Young, a ... Read More »

Are China and Russia going to dominate the Mediterranean Sea?

As NATO celebrated its 70th anniversary in Washington, one compelling security issue received insufficient attention: Chinese acquisitions of critical European infrastructure, especially ports. Trudy Rubin The Inquirer Chinese state-controlled firms now hold stakes in more than a dozen European ports on the Mediterranean and the Atlantic, from Belgium to Spain to ownership of the legendary Greek port of Piraeus. Already, one-tenth of Europe’s container terminal capacity is under Chinese control. A week ago, defying allies, Italy became the first major ... Read More »

The EU’s China Conundrum

The European Union is increasingly caught between the United States and China. Until it finds a common strategic purpose, the bloc will struggle to advance its interests and is increasingly likely to fall victim to great-power plays. Philippe Legrain Project Syndicate LONDON – Europeans can’t agree on how to handle a rising China. While European Union leaders were gathering in Brussels recently to discuss a more assertive common approach, Chinese President Xi Jinping was visiting Rome. Xi was there to ... Read More »

Erdoğan’s Four Challenges

Turkey’s president suffered a frustrating setback in local government elections as democratic resilience prevailed. Marc Pierini Carnegie Europe Watch out for the impact on the economy, the rule of law, defense, and Syria. Turkish President Recep Tayyip Erdoğan’s campaigning was vintage AKP electioneering: playing a nationalist fiddle; hiding economic realities with creative accounting and cosmetic measures; equating low interest rates (again) with low inflation; accusing foreigners of weakening the currency; threatening the opposition; continuing the crackdown on free speech and ... Read More »