Sunday, 5 June 2011

Economics

The latest news, analysis and comment on the UK and global economy.

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ECONOMICS NEWS

FSA to assess risk behind big banks’ profits

The profits of investment banks and their funding models are to be the subject of a new wave of regulatory scrutiny as the FSA searches for evidence of excessive risk-taking in the City of London.

04 Jun 2011

Drought may cost UK farmers £400m

British farmers are set to lose crops worth around £400m due to this spring's dry weather, according to the latest estimates.

04 Jun 2011

Northern Rock and Lloyds branches set for sale

The Treasury is expected to rake in £1.4bn from the sale of 620 Lloyds sites and the whole of Northern Rock, in a move which is likely to change the face of UK high street banking.

04 Jun 2011

Sir John Major: aid should make us proud

Former Conservative prime minister argues that David Cameron's commitment to aid is bold, necessary and right.

04 Jun 2011

A sudden rise in the yuan would solve nothing

The main beneficiaries of a stronger yuan would not be American and European companies but the factories of Vietnam and Bangladesh.

04 Jun 2011

Will Germany and France stave off a Greek default?

In Greece, government debt is forecast to reach about 170pc of GDP. The cheapest debt Greece can acquire comes through the European Union, and will cost some 5 to 6pc.

04 Jun 2011

Greeks protest at €12bn aid deal

Greece has been hit by protests in central Athens, after its prime minister agreed to strict new austerity measures in return for the next €12bn instalment of the International Monetary Fund’s bail-out.

04 Jun 2011

Greece agrees reform for €12bn aid

Greece will receive a crucial €12bn (£10.7bn) cash injection in international aid despite the authorities concluding that "reinvigoration of fiscal and broader structural reforms" is needed to stabilise the economy.

03 Jun 2011

What's going wrong with the US economy?

It was not a good week for President Obama.

03 Jun 2011

US jobs figures raise fears about global recovery

Fears rose for the strength of the global recovery, after jobs figures from the US capped off a week of alarming data.

03 Jun 2011

US economy: in graphs

US employers hired far fewer workers than expected in May and the jobless rate rose to 9.1pc, raising concerns the economy might be stuck in a painful slow-growth mode. Here, we take a closer look at the world's largest economy.

03 Jun 2011

US jobless rate rises to 9.1pc: reaction

US employers hired far fewer workers than expected in May and the jobless rate rose to 9.1pc, raising concerns the economy might be stuck in a painful slow-growth mode. Here is what six leading US analysts thought of the figures.

03 Jun 2011

US job woe raises fears for economic growth

US employers hired far fewer workers than expected in May and the jobless rate rose to 9.1pc, raising concerns the economy might be stuck in a painful slow-growth mode.

03 Jun 2011

Service growth around the world

A snapshot of how the UK compares with some of its global counterparts in terms of manufacturing activity.

03 Jun 2011

UK service slowdown: reaction

Britain's powerhouse services sector grew at its slowest pace in three months in May. Here's how analysts reacted to the news.

03 Jun 2011

Weakened UK services sector points to poor Q2

Britain's powerhouse services sector provided further evidence that the recovery is losing momentum as activity grew at its slowest pace in three months in May.

03 Jun 2011

The eurozone needs a Plan B, 'quarantining' the weak is too costly

Will politics continue to dominate the economics in the eurozone's response to the peripheral debt crisis? Or will the economics come to dominate the politics?

03 Jun 2011

Trichet pushes for a European finance ministry

Jean Claude Trichet has called for the creation of a European finance ministry whose powers to intervene in national economic policy would be 'well over and above the reinforced surveillance'.

03 Jun 2011

UK shoppers have 'Stockholm Syndrome'

British shoppers seem to be suffering from "Stockholm Syndrome", according to new analysis explaining their happiness with supermarkets despite rising food prices.

03 Jun 2011

Osborne must give companies a reason to stop hoarding their cash

Our road to economic redemption continued on Thursday with decent construction numbers ironing out Tuesday's manufacturing bumps.

03 Jun 2011

Champions League final offers foretaste of Olympic windfall to come

If there were any doubts about Britain's enthusiasm for the Olympics, they have been eroded over the last week.

03 Jun 2011

US faces credit-rating review

A second credit rating agency has threatened to put the US under review for a possible downgrade unless politicians put their squabbles aside and agree to raise the statutory debt limit.

02 Jun 2011

A taxing problem in the North Sea

Telegraph View: a Budget windfall tax spectacularly backfires.

02 Jun 2011

UK slowdown teaches valuable lesson of supply and demand

If the last few months have taught us anything about economics, they have been a reminder of the importance of demand.

02 Jun 2011

Greece suffers jump in credit default swaps

The cost of insuring Greek debt rose on Thursday morning after the debt-laden country suffered another credit-rating downgrade from Moody's.

02 Jun 2011