Global Markets Jittery After Sharp Share Price Falls

BBC: Stock markets in Europe remained unsettled on Tuesday despite a rebound in Japan which almost reversed record falls at the start of the week.

London's FTSE 100, along with stock markets in Paris and Frankfurt, opened higher but soon slid back.

Overnight, Japan's Nikkei 225 stock index jumped by 10.23%, or 3,217 points in its biggest one day gain in points, after the previous day's plummet.

Focus has now shifted to US stock markets, which open in a few hours, after a couple of days of torrid trading. » | João da Silva and Dearbail Jordan, Business reporters, BBC News | Tuesday, August 6, 2024

Google Violated Antitrust Laws in Online Search, Judge Rules

THE NEW YORK TIMES: The landmark ruling by Judge Amit P. Mehta was the first antitrust decision of the modern internet era in a case against a technology giant.

Google acted illegally to maintain a monopoly in online search, a federal judge ruled on Monday, a landmark decision that strikes at the power of tech giants in the modern internet era and that may fundamentally alter the way they do business.

Judge Amit P. Mehta of U.S. District Court for the District of Columbia said in a 277-page ruling that Google had abused a monopoly over the search business. The Justice Department and states had sued Google, accusing it of illegally cementing its dominance, in part, by paying other companies, like Apple and Samsung, billions of dollars a year to have Google automatically handle search queries on their smartphones and web browsers.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta said in his ruling.

The ruling is a verdict on the rise of giant technology companies that have used their roots in the internet to influence the way we shop, consume information and search online — and indicates a potential limit of Big Tech’s power. The ruling is likely to influence other government antitrust lawsuits against Google, Apple, Amazon and Meta, the owner of Facebook, Instagram and WhatsApp. The last significant antitrust ruling against a tech company targeted Microsoft more than two decades ago. » | David McCabe, Reporting from Washington | Monday, August 5, 2024

Shares in New York and London Tumble On Fears of US Recession

THE GUARDIAN: FTSE 100 on track for its lowest close since April and Japan’s Nikkei suffers biggest fall since crash of 1987

Shares on Wall Street and in London have fallen heavily amid a global stock market rout triggered by fears of a recession in the US.

The tech-focused Nasdaq index dropped by 6% as trading in New York opened on Monday, while the broader S&P 500 index fell by 4.2% in a sell-off triggered by weak US jobs data. The Dow Jones industrial average lost more than 1,100 points, a 2.8% decline.

Japan’s benchmark stock index, the Nikkei 225, suffered its biggest decline for nearly four decades. It was down by 12%, the biggest single-day fall since the Black Monday crash of 1987. Other stock indices around the world were lower as investors dumped riskier assets. South Korea’s Kospi fell by 9%, Germany’s Dax was down 2%, and share indices in Australia, Hong Kong and China also fell heavily. » | Jasper Jolly and Graeme Wearden | Monday, August 5, 2024

Advice: When the Stock Market Drops, Stay Calm and Do Nothing: There is no reason to think that you can predict what will happen in the markets in the next few hours or in the near future. It’s better not to try. »

Bitcoin and other cryptocurrencies plunge, mirroring global markets.: The precipitous falls show that digital currencies remain vulnerable to the same broader economic forces that affect technology stocks and risky investments. »

Global Markets Jolted by Signs of U.S. Economy Slowing

THE NEW YORK TIMES: U.S. stocks fell sharply, after markets recorded heavy declines in Asia and Europe.

A wave of panic rippled through financial markets on Monday, with stocks falling sharply in the United States and around the world as investors zeroed in on signs of a slowing American economy.

Monday’s drop extended a sell-off that had begun last week, after the U.S. jobs report on Friday that showed significantly slower hiring, with unemployment rising to its highest level in nearly three years. This deepened fears that the world’s largest economy could be sliding into a recession and that the Federal Reserve may have waited too long to cut interest rates.

The drop was exacerbated by other factors — concerns that technology stocks had run up too far too fast, and that a suddenly strengthening yen would hurt the prospects of Japanese companies and some global traders — both hit markets too. » | The New York Times | Monday, August 5, 2024

Global Stock Markets Sink On US Economy Fears

BBC: Stock markets across Europe and Asia tumbled on Monday, spooked by fears that the US economy is heading for a slowdown.

In London, the FTSE 100 index opened 2.3% lower while the Euronext 100 tumbled by 3.5%.

They followed sharp falls across Asia with Japan's Nikkei 225 dropping 12.4% or 4,451 points in the biggest fall by points in history.

It follows weak jobs data in the US on Friday which sparked concerns about the world's largest economy.

Meanwhile, the yen has been strengthening against the US dollar since the Bank of Japan raised interest rates last week, making stocks in Tokyo more expensive for foreign investors.

Stock markets in Taiwan, South Korea, India, Australia, Hong Kong and Shanghai all tumbled. » | João da Silva, Business reporter | Monday, August 5, 2024

THE NEW YORK TIMES: Markets Around the World Are Jolted by Fears of Slowing U.S. Growth: A rout that began in Asia continued in Europe, and U.S. stocks are set to fall. Japan’s benchmark index logged its worst single-day point decline. »

Bank of England Cuts Interest Rates to 5% in Narrow Vote

THE GUARDIAN: Reduction is first since March 2020 as governor says inflationary pressures have ‘eased enough’ to enable cut

The Bank of England has cut interest rates for the first time since the start of the Covid pandemic, moving to ease the pressure on households after ratcheting up borrowing costs to combat the worst inflation shock in four decades.

In a finely balanced decision after holding borrowing costs at the highest level since the 2008 financial crisis for a year, the Bank’s monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.

Exposing divisions within the central bank’s most senior ranks over the timing of a cut, the MPC was split by five votes to four, with the governor, Andrew Bailey, casting the deciding vote for the first reduction in borrowing costs since March 2020. » | Richard Partington, Economics correspondent | Thursday, August 1, 2024

Don’t be fooled by the interest rate cut – higher rates are here to stay: Mortgage payers and business owners vainly hope cut to 5% signals return to pre-pandemic era of cheap borrowing »

Bank of England Set to Rain on Hopes of Interest Rate Cut after Economic Bounce

THE GUARDIAN: This week’s Bank meeting is unlikely to bring borrowers any joy amid a strong recovery from 2023’s mild recession

Savers are always on the lookout for the best interest rates and the UK seems like a good bet at the moment. In recent months, the pound has climbed in value against the euro and the dollar as economists speculate that UK interest rates will remain at 5.25% for longer than previously expected.

While the odds of a cut in borrowing have shortened, with a narrow majority of City analysts expecting a reduction, few outside the Square Mile believe a change is imminent. » | Phillip Inman | Sunday, July 28, 2024

Stock Markets Tumble amid Jitters over Tech Companies’ Growth

THE GUARDIAN: Losses in Europe and Asia are driven by AI-related groups including Nvidia, Tesla and Google-owner Alphabet

Stock markets in Europe and Asia took a tumble on Thursday, as jitters over the future growth of major tech companies sparked a global sell-off.

The pan-European Stoxx 600 dropped 1.3% to its lowest level since May this year, having been hit by a 2.75% decline in the Dutch chipmaker ASML, a 5.5% drop in Germany’s Infineon Technologies, and a 12.8% fall in Switzerland’s semiconductor company STMicroelectronics.

The rout began in the US overnight, where the tech-focused Nasdaq fell 3.6% on Wednesday, marking its biggest single-day decline since 2022. About $1tn (£776bn) was knocked off the value of the Nasdaq 100, which covers the most valuable firms on the index. » | Kalyeena Makortoff | Thursday, July 25, 2024

Why Britain Joined the EU

Jun 5, 2024 | On D-Day we remember how brave men and women from many allied countries fought the final battles against the Nazis to bring the most brutal world war to an end in Europe. Peace came at last as a direct result of their enduring efforts.

Tens of thousands of lives were tragically and horribly lost in the pursuit of that aim. But how was lasting peace achieved between European countries that, for centuries, had been more used to resolving their differences through violence, war, and subjugation?

The European Community, established during the post-war years and now called the European Union, played a key role. Yes, NATO helped to protect us from external threats. But it was the European Union that brought sustained security and peace between its members.

By collaborating and cooperating, in peace and democratically, to decide on the running and future direction of our continent, European countries found and agreed solutions to common problems.

It worked. Never has a shot been fired between EU member states. An amazing achievement, for which the EU won the Nobel Peace Prize in 2012. So, when people ask, ‘Why was the EU started?’ the answer, first and foremost, was peace. Yes, trade was one of the means, but peace was the primary goal. And it’s why Britain joined the European Community. To work together, peacefully and democratically, with our European allies to recreate our post-war continent based on democracy, human rights, free market trade and the rule of law.

Did people truly understand this when ticking the ‘Leave’ box in the 2016 referendum?

Robert Reich: The Real Welfare in America I 10 Economic Myths Debunked

Jul 12, 2024 | The Wells Fargo exec overseeing their customer account scam got a $125 million exit package. Meanwhile, most Americans who lose their jobs get only limited unemployment benefits. When I say we have socialism for the rich, harsh capitalism for the rest, this is what I mean.

Argentine Provincial Governors Back Milei's Austerity Programme

Jul 10, 2024 | Argentina's president Javier Milei and the governors of 18 provinces have signed a pact in a push to broaden support for his economic reform programme. The signing took place on Independence Day as the country deals with its worst economic crisis in decades.

Did Thatcher Ruin or Save the UK Economy?

Jan 29, 2024 | The economic impact of Margaret Thatcher's economic policies was immense. This is a look at the impact on inflation, unemployment, growth, inequality and the long-term structure of the economy.

Skint: The Truth About Britain's Broken Economy | Channel 4 Documentaries

Jul 2, 2024 | Britain feels under-funded and falling apart. On the eve of the election, as politicians argue about the causes, economist Tim Harford looks at what the numbers reveal about the broken state we're in.

Central Bank Independence Is a Myth. They Need to Be Democratized.

Oct 30, 2019 | Gerald Epstein discusses his new book, a collection of essays on how central banking is shaped, how it shapes the economy, and how it can be made more responsive to people's needs.

Niall Ferguson: Are We the Soviets Now?

Jul 2, 2024 | With public calls to remove the sitting US President, a UK election set to unseat its government and the rightward swing in Europe, it’s all change on the Western front. Best-selling historian Sir Niall Ferguson joins UnHerd’s Freddie Sayers for a wide-lens tour of populism and its discontents.

How Does Greece's Government Justify a 6-day Working Week? | DW News

Jul 3, 2024 | Greece has become the first country in the European Union to introduce a six-day working week for some businesses. The measure applies to firms that provide 24/7 services, or those experiencing an extraordinary workload. Greece's pro-business government calls the regulation "worker-friendly." But it's sparked outrage among trade unions. And many people on the street don't like it either.

Kettensägen-Präsident in Berlin | DW Nachrichten

Jun 21, 2024 « Das "Rattennest": So nennt Javier Milei das argentinische Parlament. Wohl auch weil er als neuer Präsident von dort kaum die nötige Zustimmung für seine umstrittenen Gesetzesvorhaben bekam. Seit einem halben Jahr ist Milei nun im Amt: Was ist seitdem aus der wirtschaftlichen Radikal-Reform geworden, die Milei versprochen hat? Wie macht er sich auf dem internationalen Parkett und warum wird er beim Staatsbesuch in Berlin nicht mit militärischen Ehren empfangen?

Bloomberg Originals: Why the UK's Economy Stopped Working

Jun 21, 2024 | The UK’s new government will inherit an historic economic challenge as a result of Brexit, the pandemic, Russia’s war on Ukraine and the debt burden exacerbated by all three. Inflation is just one obstacle facing the Labour Party under Leader Keir Starmer, the Conservatives under Prime Minister Rishi Sunak or whomever the country chooses. While raising taxes or increasing debt are unlikely options, there is a potential solution to Britain's economic crisis: increasing productivity and efficiency.

Why Germany Will Lose the 2030s

Mar 9, 2024 | The world's 4th largest economy, Germany, is facing serious challenges. From its reliance on China for export markets to the impact of its energy choices and its role within the European Union, this video delves into the multifaceted issues that Germany must navigate in the coming years.

Why the UK Will Lose the 2030s

May 21, 2024 | The United Kingdom is a nation once known as the empire on which the sun never sets. The 19th century saw the UK as the world's wealthiest and most powerful nation, victorious through two world wars. However, ominous clouds now loom over this historical powerhouse.

In this video, we explore the multifaceted crises threatening the UK's future. From housing shortages and Brexit mismanage-ment to a looming demographic disaster, the fabric of British society is fraying. The decade ahead could see the UK losing its permanent seat on the UN Security Council and struggling to meet its massive public service obligations.

From the heights of British naval dominance and the Industrial Revolution to the post-war economic shifts catalyzed by the Bretton Woods system, we'll examine the demographic time bomb of an aging population and the strain on public services like the NHS. With high tax rates driving brain drain and protests simmering across the nation, can the UK pull through these formidable challenges? Stay tuned as we unravel the complexities and imperatives of this critical moment in British history.