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Associated Press
08-05-2025
- Business
- Associated Press
Trust, Tech and Transformation at the Mastercard Global Inclusive Growth Summit
Mastercard Center for Inclusive Growth These are truly dizzying times, but if there was a single takeaway from the Global Inclusive Growth Summit held last month in Washington, D.C., it was this: The world can't afford to heed the standard advice for vertigo — sit down, lie still. In fact, uncertainty can be an opportunity for action, said Shamina Singh, the president and founder of the Mastercard Center for Inclusive Growth, which organizes the annual summit. 'That's what is needed now more than ever,' she said. 'New ways of thinking, new ways of doing, new partnerships that are purpose-built for the world as it is right now, but also how it will be tomorrow.' Among the challenges raised by the policymakers, philanthropists, futurists, NGO leaders and others in the packed auditorium: How do we drive economic growth so people everywhere can reach financial health? How do we foster digital transformation without leaving small businesses vulnerable to growing cyber threats? What kind of leadership is needed in times of change? 'We have to anticipate now that those once-in-a-decade events are every year,' said Henry Timms, CEO of the global consultancy Brunswick Group. 'Leadership during uncertain times requires balancing immediate challenges with long-term vision.' Here are three key insights from the summit: 01It takes a village to build financial health. You can't measure someone's financial health by the balance in their bank account or their annual salary, said Haley Sacks, the financial influencer known as Mrs. Dow Jones, in a conversation with Queen Máxima of the Netherlands, the U.N. secretary-general's special advocate for financial health. 'Having a gym membership doesn't mean you're going to have a six-pack,' Sacks said. Queen Máxima called on financial institutions to listen more carefully to their customers and their needs, and to develop and test tools that people will use to grow financially – and therefore grow as customers too. Employers can also play a greater role in supporting financial health, she said, with initiatives like automatic savings that can provide a buffer for emergencies, improving employees' peace of mind and productivity. As digitization makes deeper inroads across sectors, organizations can work together to create more comprehensive financial services. 'I think you do not see people emerge securely into the middle class until they have an entire toolbox, not one tool like insurance,' said Andy Kuper, CEO of LeapFrog Investments, during a panel on impact investing. 'So I'm hopeful that if we as a world — and that especially requires investors to be smart — back the right kinds of companies, that you will see many billions of people with this toolbox.' Despite the current economic turbulence, the middle class continues to grow globally, with already half of the global population in that income group, and projections indicating more than a billion people will join it in the coming decade, primarily in Asia, said Wolfgang Fengler, CEO of World Data Lab, in a session on the new global consumer with Michelle Meyer, chief economist of the Mastercard Economics Institute. 'Don't bet against digital,' Fengler said, 'and don't bet against the middle class.' 02Trust is the currency underpinning economic growth in the digital world. 'I am optimistic that cybersecurity is table stakes — it's increasingly understood that it is the starting point to an inclusive world,' said Mastercard CEO Michael Miebach. Yet the gap between those with strong cyber defenses and those without is widening at a time when technology has enabled more sophisticated and convincing scams, attack vectors are expanding, and trust in digital spaces is breaking down. Rebuilding trust starts at the individual level: 'We need to reclaim control of personal data, which is essential to one's identity and personhood,' said Frank McCourt, executive chairman of McCourt Global and founder of Project Liberty. He called for 'an intention economy over an attention economy, where individuals benefit economically from their data.' At the systemic level, cyber threats should be viewed as a business and leadership issue, rather than merely a technical one. 'They are a central risk to global economies, to critical infrastructure and to public trust,' said Alissa 'Dr. Jay' Abdullah, Mastercard's deputy chief information security officer. Public-private cooperation is critical, Miebach said, from cyber training and capacity building to real-time information sharing. 'There's a fragmentation of the world that we're currently witnessing, where people look more inside, and this [gets] in the way of sharing effectively,' he said. 'The way to defending is by sharing, being close.' Criminal organizations don't recognize borders, said Valdecy Urquiza, secretary general of INTERPOL. 'The threats are coming from everywhere … We have got to foster collaboration — cross-border collaboration, cross-sector collaboration — we've got to make sure that everyone is included.' 03Invest in closing the digital divide, wherever it exists. Whether it's Alabama or Angola, Montana or Malawi, rural innovation requires addressing fundamental infrastructure needs such as broadband access while also developing skills-based education programs that connect people to higher-paying jobs. Connectivity is one area of critical concern worldwide – as Amy Doherty, chief information officer at the World Bank half-joked, 'I love the new Maslow's hierarchy of needs that has Wi-Fi at the bottom.' In the U.S., that requires more coordination between local, state and federal governments, and with the private sector. 'If you don't have access to high-speed internet, you simply can't compete,' said Ross DeVol, CEO of think tank Heartland Forward. 'It is the number one economic challenge for many of these rural locations.' Julie Gehrki, president of the Walmart Foundation, said employers should work closely with states to close the skills gap — making sure community college classes address the changing needs of the job market. 'If you're investing in a company in rural America that's now going to need people with tech skills, how are you making sure they know the demand there, they know the training program that's relevant, and that they can sign up to be a part of that transformation?' Another key focus area is Africa, which is on the cusp of becoming a bigger global economic player thanks to its modern technology adoption, a young digital-native population, and creative industries. With more investment in the electricity infrastructure of sub-Saharan Africa, AI could even help emerging economies leapfrog developed ones, Doherty said. Take agriculture — agribusiness could use AI to give tailored advice to farmers about their land and help them increase crop yields, which in turn helps their community thrive, she said. At the close of the day, Jon Huntsman, Mastercard's president of Strategic Growth, spoke with James Mwangi, chief executive of African financial services company Equity Group Holdings, which is part of the MADE Alliance, launched by Mastercard and the African Development Bank to extend digital access to critical services to 100 million people and businesses in Africa. 'A transformed Africa is a sustainable world,' Mwangi said. 'Africa is not coming out on this stage as a beggar. It's coming with this human resource to serve the world. It's coming with its agricultural potential to secure.' Banner photo, Mastercard Economics Institute Chief Economist Michelle Meyer, left, discusses consumer spending habits and the resilience of the middle class with Wolfgang Fengler, right, CEO of the World Data Lab. Originally published by Mastercard. Learn more about the Mastercard Center for Inclusive Growth by following us on LinkedIn and Instagram. See content from the Summit: Visit 3BL Media to see more multimedia and stories from Mastercard
The Independent
01-04-2025
- Business
- The Independent
Starmer admits UK will face Trump tariffs this week amid global recession fears: Live updates
Mr Trump will unveil sweeping tariffs on any country that 'treats the US unfairly' on Wednesday. The two-time president has dubbed the move 'liberation day'. Sir Keir Starmer 's government has been trying to negotiate an economic deal with the US, which it is hoped could protect UK businesses from the worst impacts of Mr Trump's plans. But that will not be in place before Wednesday and trade talks alone are unlikely to be enough to exempt the UK from the president's desire to impose tariffs on imports to the US from around the world. Losses deepened for the UK's FTSE 100 stock exchange, which was trading around 1.3 per cent lower on Monday. On Wall Street, the S&P 500 rose 0.6 per cent in a roller-coaster day, after being down as much as 1.7 per cent during the morning. Mr Trump's threats have provoked threats of retaliatory tariffs from affected countries, increasing fears of an escalating global trade war. What exactly are tariffs and why is Trump imposing them Tariffs are taxes paid by US companies on imported goods. They are seen by Donald Trump as a way to bolster production by American firms, protecting home-grown manufacturers, while also punishing foreign countries for unfair trade practices. Jabed Ahmed Starmer facing 'impossible task' of potential retaliation to Trump tariffs, says expert Sir Keir Starmer is facing an 'impossible task' in deciding whether to retaliate to Trump's looming tariffs, an expert has warned. Simon Finkelstein, director of geopolitics at the Brunswick Group said 'It would be foolish to do so, however, politically it might become untenable not to do so.' 'Fundamentally he's got an impossible task because the people who work for the President clearly don't know what he's going to do on Wednesday either,' he told Times Radio. 'But I think the thing [Starmer] has got to do is continue on the same strategy, which is attempt to negotiate some sort of future deal with the US, whether that looks like something sort of wider range or more limited on technology to mitigate the worst aspects of the tariffs.' 'The UK government has to at least try,' Mr Finkelstein added. Jabed Ahmed1 April 2025 03:00 Trump's tariffs will have 'drag on global activity' Many economists believe that trade tensions sparked by Mr Trump will slow economic growth around the world. The Organisation for Economic Co-operation and Development (OECD) said earlier this month that US trade policy would be a 'drag on global activity' and hit living standards around the world. 'Overall, consumers face much of the burden of higher tariffs,' the OECD said in its economic outlook report, with real disposable incomes estimated to decline by 1,600 US dollars (£1,237) per household in the US. In terms of the UK impact, experts say there is a great amount of uncertainty about how tariffs will filter through to households and businesses, especially if the country avoids steep penalties. Economists at the Bank of England said the effect on inflation in the UK would depend on how other countries respond with their own trade policies, and how foreign exchange rates are affected. Economist Swati Dhingra, a member of the Bank's Monetary Policy Committee, has said the UK is sensitive to changing import prices. But she suggested that the inflation impact could be 'less than feared' because the main goods that the US imports from the UK, including refined oil, were unlikely to see cost increases on account of tariffs. The Bank, which sets UK interest rates, said it was a 'rapidly evolving situation' that it was monitoring closely. Jabed Ahmed1 April 2025 01:00 In numbers: Which countries will suffer most from Donald Trump's car tariffs? In numbers: Which countries will suffer most from Donald Trump's car tariffs? The UK's number-one goods export to the US is cars, worth £8.3 billion in the year up to November 2024; but countries worldwide will be affected by the new tariffs. Data correspondent Alicja Hagopian reports. Jabed Ahmed31 March 2025 23:59 The Independent View | The financial markets no longer believe in Donald Trump's 'stable genius' The financial markets no longer believe in Donald Trump's 'stable genius' Editorial: The president's obsession with tariffs risks a repeat of the mistakes of the 1930s – and on 'Liberation Day', the world may pay a heavy price Jabed Ahmed31 March 2025 23:00 Round up | Downing Street admits Britain will be hit by Trump's tariffs this week as worldwide trade war looms Our political editor David Maddox and politics correspondent Archie Mitchell report on today's events: Downing Street admits Britain will be hit by Trump's tariffs on Wednesday Trump's tariffs could hit 60 per cent of firms directly, two major business groups have warned Jabed Ahmed31 March 2025 22:00 Business leaders warn Starmer against retaliatory tariffs on US Some business groups have warned Sir Keir Starmer against follow the EU in unleashing retaliatory measures. John Longworth, chairman of the Independent Business Network (IBN), warned that UK tariffs on the US would be 'an act of self harm'. He said: 'Tariffs are primarily self harm unless they attack strategic industries. Our goods trade with the US is broadly in balance. We should seek trade arrangements asap and ignore the naysayers. It will cut inflation, help consumers and UK business. 'We should avoid the EU tariff war and stop protecting expensive EU producers. If we get involved in a tariff war it will cut economic growth even further and add to inflation = stagflation.' Meanwhile, Marco Forgione, director general at the Chartered Institute of Export and International Trade, has suggested that it will result in major western democracies turning their backs on the US and working more closely together. He told The Independent: 'There is going to be a geo-political shift with Canada, EU, UK and Australia forming a closer trading partnership. 'That means the development of either a formal or informal collaboration. It won't replace the US market but certainly regarding commodities could establish a new collaborative trading community.' Jabed Ahmed31 March 2025 21:26 Farage says tariff retaliation would be 'self-harm' Reform UK leader Nigel Farage, who is a prominent supporter of the US president, said that tariffs 'won't be popular with anybody, not me either' but that retaliation would be 'an act of self-harm'. 'What disappoints me more than anything is we had a massive opportunity in Trump's first term to do a free trade deal with America,' he said. 'We didn't do it because the Conservatives didn't deliver Brexit, we weren't free to do it, but we did negotiate nearly three quarters of the chapters that we needed to get to that position… But I do think we can sort this out.' Jabed Ahmed31 March 2025 21:09 European stock markets unsettled at close as US tariffs edge closer European stocks fell on Monday as concerns swept through financial markets, days before US President Donald Trump's tariff plans are due to take effect. London's FTSE 100 was down more than 100 points during the lows of the day. At close, it had lost 76.04 points, or 0.88%, to settle at 8,582.81. The sell-off was more pronounced for other top European indexes. Germany's Dax fell 1.33%, and France's Cac 40 tumbled 1.58%. Experts said fears of an escalating trade war meant there was 'nowhere to hide in the stock market' with a raft of global stocks caught up in the panic. Kathleen Brooks, research director at XTB, said: 'There is an air of capitulation in financial markets ahead of the April 2 reciprocal tariff announcement from the US. 'Tariff fears have deepened over the weekend, there has been no let-up from president Trump, who said that no country would be able to avoid his reciprocal tariffs. This dashed any hopes for a last-minute reprieve. 'There is nowhere to hide in the stock market as equities get caught up in the tariff headwinds, which is not helped by the fact that it is the last trading day of first quarter.' Jabed Ahmed31 March 2025 21:01 US tariffs a 'huge headache' for small firms, warns FSB The Federation of Small Businesses (FSB) said that 60 per cent of its members export to the US. Tina McKenzie, policy chair of the FSB, said: 'There is no skirting around the fact that tariffs are going to be a huge headache for small firms. 'Extra costs are the last thing businesses need, especially at a time where nine in 10 small and medium sized businesses (SMEs) believe exporting is important to the overall economy. With 59 per cent of small exporters currently exporting to the US, any disruptions to trade could have a huge ripple effect.' Jabed Ahmed31 March 2025 20:28
