Latest news with #Group-of-Seven
Straits Times
4 days ago
- Business
- Straits Times
London suffers most job losses after Labour's tax hikes
London has shed almost 45,000 payrolls since October when the Labour government announced a £26 billion hike in employers' national insurance. LONDON – London is bearing the brunt of the UK's jobs slowdown as a combination of tax rises, elevated wage costs and weak consumer spending force the city's business to cut payrolls faster than in the rest of the country. The capital has shed almost 45,000 jobs since October when the Labour government announced a £26 billion (S$45 billion) hike in employers' national insurance – a payroll tax – and a new higher minimum wage, according to tax data. It means one in four of all job losses across the country have come in the UK's most productive region. Combined with the surrounding South East region, the rate rises to nearly four in 10 lost jobs. Retail and hospitality are among the worst-affected sectors, according to figures published by the Office for National Statistics earlier in the week, and a large share of these roles are based in London – business group UKHospitality says about a third of jobs in its sector are in the capital. Keeping pubs and restaurants going is increasingly difficult, according to Kate Nicholls, UKHospitality's chief executive. She said London was the least competitive city in Europe in terms of taxes and other costs and has lost around 30,000 hospitality jobs over the last year. 'The rent is higher, the business rates are higher, the wage costs are higher, and we are not seeing enough money coming through the front door to be able to cover those costs and for businesses to remain viable,' Ms Nicholls said during a phone interview. Separate data from Indeed – a jobs website – confirmed that vacancies in London have dropped faster than the national average since October. Retail and hospitality job ads in the capital fell almost 40 per cent over that period, compared with declines of 26 per cent and 9 per cent, respectively, recorded across the country. Data on Aug 14 showed the UK growing at a faster rate than other Group-of-Seven countries, but most of the boost came from government spending, while consumers are still reluctant to splash out. This could be benefiting areas of the country that rely more on the public sector than London does, according to Anna Leach, chief economist at the Institute of Directors. The tech sector has been paring back recruitment after quickly expanding during the pandemic and Jonathan Steenberg, UK economist at credit insurer Coface, said insolvencies in the IT and communications industries are up by almost one-third from a year ago. Artificial intelligence (AI) may also be playing a role, as it replaces some roles in finance, marketing and management consulting, while some international employers with London headquarters are freezing recruitment in the face of heightened geopolitical tensions. In the retail sector, meanwhile, further job losses are expected as the fear of tax hikes weighs on consumer spending. 'Employers are concerned about relatively low demand, they're concerned about low consumer confidence, and they're really concerned about what lies ahead in the next budget,' said Andrew Goodacre, chief executive officer at British Independent Retailers Association. BLOOMBERG
Business Times
5 days ago
- Business
- Business Times
UK economy grew faster-than-forecast in Q2
[LONDON] The UK economy fared better than expected in the second quarter, bringing some relief for Chancellor of the Exchequer Rachel Reeves but raising the bar to further interest-rate cuts from the Bank of England. Gross domestic product rose 0.3 per cent, the Office for National Statistics said on Thursday (Aug 14), beating the 0.1 per cent forecast by both private-sector economists and the Bank of England. Output in June alone gained 0.4 per cent – double expectations – following modest declines in the previous two months. The figures suggest the economy held up during what was always expected to be a difficult period as businesses and consumers were hit by Reeves' £26 billion (S$45.2 billion) payroll tax raid, inflation-busting hikes to regulated prices such as energy and increased taxes on home purchases, as well as US President Donald Trump's tariffs. Growth of 0.7 per cent in the first quarter was artificially boosted by manufacturers trying to get ahead of US tariffs, though Prime Minister Keir Starmer repeatedly hailed Britain outperforming the other Group-of-Seven nations as evidence of the economy turning a corner. The data also appear to further muddy the BOE's decision over whether to carry on cutting interest rates from the current 4 per cent after statistics on Tuesday showed the economy has lost fewer jobs than initially thought since Reeves' tax-raising budget last October. Traders are no longer fully pricing in a further reduction this year, and expect borrowing costs to settle at 3.5 per cent next year. BLOOMBERG
Yahoo
12-06-2025
- Business
- Yahoo
Dollar hits fresh 2025 low as US tariff concerns pick up again
(Bloomberg) — The dollar (DX=F) extended its decline as worries over US tariffs increased after President Donald Trump said he would notify trading partners soon of unilateral levies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The Bloomberg Dollar Spot Index slid as much as 0.6% to the lowest level since July 2023 on Thursday, extending the previous day's drop spurred by softer US inflation data. The euro rose to its strongest since November 2021. Traders will be monitoring US producer-price data due later Thursday for confirmation of subdued pressures. Some of its components feed into core personal consumption expenditure, the Federal Reserve's preferred measure of inflation. They will also watch an auction of 30-year Treasuries after yields surged last month on fiscal concerns. 'Dollar weakness has much more room to run,' said Vasileios Gkionakis, senior economist and strategist at Aviva Investors. He added the greenback's weakness despite rising yields show eroding investor confidence in US assets. The dollar's decline spilled into the currency volatility market, reinforcing the inverse correlation between the greenback and hedging costs recently. Demand was particularly pronounced in the one-week tenor, which captures the Fed's June 18 policy meeting. What Bloomberg's Strategists Say... 'Trader pricing still favors more Federal Reserve interest rate cuts, although the precise timing flips around depending on the prevailing investor mood. But what is consistent is the US dollar ploughing a path to the downside as FX trader convictions firm.' — Mark Cranfield, Markets Live Strategist, Singapore Currency traders will also be watching the upcoming Group-of-Seven summit for any trade negotiation developments. 'We are watching the G-7 summit closely for pending trade deals between the US and its key trading partners (e.g., Mexico and Canada),' said Alex Loo, macro strategist at TD Securities in Singapore. 'Leaks this week may boost sentiment, especially the likes of Canadian dollar and Mexican peso.' (Updates with pricing, analyst quote and options section.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Dollar Hits Fresh 2025 Low as US Tariff Concerns Pick Up Again
(Bloomberg) -- The dollar extended its decline as worries over US tariffs increased after President Donald Trump said he would notify trading partners soon of unilateral levies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The Bloomberg Dollar Spot Index slid as much as 0.6% to the lowest level since July 2023 on Thursday, extending the previous day's drop spurred by softer US inflation data. The euro rose to its strongest since November 2021. Traders will be monitoring US producer-price data due later Thursday for confirmation of subdued pressures. Some of its components feed into core personal consumption expenditure, the Federal Reserve's preferred measure of inflation. They will also watch an auction of 30-year Treasuries after yields surged last month on fiscal concerns. 'Dollar weakness has much more room to run,' said Vasileios Gkionakis, senior economist and strategist at Aviva Investors. He added the greenback's weakness despite rising yields show eroding investor confidence in US assets. The dollar's decline spilled into the currency volatility market, reinforcing the inverse correlation between the greenback and hedging costs recently. Demand was particularly pronounced in the one-week tenor, which captures the Fed's June 18 policy meeting. What Bloomberg's Strategists Say... 'Trader pricing still favors more Federal Reserve interest rate cuts, although the precise timing flips around depending on the prevailing investor mood. But what is consistent is the US dollar ploughing a path to the downside as FX trader convictions firm.' — Mark Cranfield, Markets Live Strategist, Singapore Currency traders will also be watching the upcoming Group-of-Seven summit for any trade negotiation developments. 'We are watching the G-7 summit closely for pending trade deals between the US and its key trading partners (e.g., Mexico and Canada),' said Alex Loo, macro strategist at TD Securities in Singapore. 'Leaks this week may boost sentiment, especially the likes of Canadian dollar and Mexican peso.' (Updates with pricing, analyst quote and options section.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
20-05-2025
- Politics
- Forbes
Tuesday, May 20. Russia's War On Ukraine: News And Information From Ukraine
Dispatches from Ukraine. Day 1,182. Trump-Putin Phone Call U.S. President Donald Trump spoke for nearly two-and-a-half hours with his Russian counterpart, Vladimir Putin, on May 19, with the phone conversation focusing on potential steps toward ending the war in Ukraine and trade issues. Putin described the call as 'very substantive and useful,' saying that Moscow is willing to work on a memorandum with Ukraine drafting principles for a future peace agreement, including a possible ceasefire. Following this call, Trump plans to speak with Ukraine's President Volodymyr Zelenskyy. One day earlier, on May 18, Zelenskyy met with U.S. Vice President J.D. Vance and Secretary of State Marco Rubio at the inauguration of Pope Leo XIV at the Vatican. Zelenskyy briefed U.S. officials on the stalled Istanbul talks and Russia's unrealistic demands for a ceasefire. Russia's Attacks on Ukraine Russia carried out its largest drone attack on Ukraine to date in the evening of May 17 and overnight into May 18, launching a record-breaking 273 Iranian-designed Shahed drones on Ukraine's capital, Kyiv, and surrounds, and on the central-eastern regions of Dnipropetrovsk and Donetsk. The Ukrainian Air Force reported downing 88 drones, while 128 were neutralized by electronic warfare systems. Still, one woman was killed in the attack, and three others injured, including a child. The assault, which exceeded the Kremlin's previous record of 267 drones used in a single strike in February 2025, came one day ahead of a scheduled call between Russian President Vladimir Putin and U.S. President Donald Trump to discuss a possible ceasefire in Ukraine. Sumy region. A Russian drone struck a civilian bus near the northeastern city of Bilopillia on May 17, killing nine people and injuring seven others. An entire family of three was reportedly among the dead. A three-day mourning period has been declared in the city. Kherson region. Late on May 18, Russian shelling of residential areas in Ukraine's southern oblast, or region, of Kherson, killed a woman and injured three other people; earlier the same day, a man was killed in a drone strike on the village of Vesele on the Dnieper River. Kharkiv region. Russian strikes on Ukraine's northeastern region of Kharkiv on May 16 killed one woman, injured nine civilians, and caused widespread damage to homes and infrastructure. Donetsk region. Unrelenting Russian artillery and drone strikes killed four and left 19 others injured in Ukraine's eastern province between May 17-19. Economic Updates The European Union plans to propose lowering the current $60-per-barrel price cap on Russian seaborne oil to $50 at the upcoming Group-of-Seven industrialized nations, or G7, finance ministers' meeting in Canada, as a way to tighten sanctions on Moscow's oil revenues. The price cap, established in December 2022, restricts the sale, shipping, and insurance of Russian crude above the set threshold to curb funding for Russia's invasion of Ukraine while stabilizing global oil supply. Russia, however, has circumvented these limits by using a 'shadow fleet' of uninsured tankers, and Russian crude prices have frequently exceeded the cap, though oil prices briefly dipped below $60 in April amid rising economic uncertainty. Ukraine's Ministry of Economy estimates the country's exporters could lose $3.25 billion annually if the EU's temporary free trade regime, set to expire June 5, 2025, is not extended, risking a near 1% hit to GDP growth. The suspension would most impact corn, wheat, poultry, and sugar exports, which surged to 5.4 billion euros ($6 billion) last year under tariff-free conditions introduced in June 2022 to support Ukraine's wartime economy. Ukraine is preparing investors for a possible missed payment of $500 million, due in early June, on $3.2 billion of GDP-linked debt, with chief negotiator Yuriy Butsa saying last week that Ukraine was in no rush to restructure, but focused on securing the right deal. Despite talks breaking down with key warrant holders, led by hedge funds opposed to a full rewrite, Kyiv says it remains committed to finding a sustainable solution. The complex warrants, tied to Ukraine's economic growth, were excluded from last year's broader debt restructuring and now pose challenges as Ukraine's economy recovers from a 30% contraction in 2022. Military Aid to Ukraine On May 18, several European countries announced new military aid packages to Ukraine totaling over $1.7 billion. Belgium is set to deliver a $1.1 billion package featuring armored ambulances, drones, air defense systems, and a Leopard tank with a new gun turret. Denmark unveiled a $610 million aid package, including fighter jet equipment and expanded military training programs. Finland committed $100 million in ammunition, funded by profits from frozen Russian assets, while Italy is reportedly preparing its 11th aid package. The package will include 400 M113 armored personnel carriers that are tracked, or equipped with continuous treads rather than wheels for superior traction, alongside a satellite surveillance system to enhance frontline intelligence and coordination. The U.S. has authorized Australia to send decommissioned, American-made M1A1 Abrams tanks to Ukraine, with the first shipment of 49 tanks already enroute as part of a $150 million aid package. U.S. officials, nonetheless, are skeptical about the tanks' battlefield viability due to their vulnerabilities in a drone-dominated war. The move follows earlier deliveries of Abrams tanks from the U.S. amid ongoing debate over the tanks' effectiveness. So far, Ukraine has received 31 Abrams tanks from the U.S., with Dutch open source intelligence group Oryx reporting that 10 have been destroyed, eight damaged and abandoned, and one damaged and captured. By Danylo Nosov, Karina L. Tahiliani
