In his Budget speech to parliament on Wednesday, the UK chancellor George Osborne indulged in the traditional needling of his opponents on the opposite bench. Whether it was a dig at Ed Miliband, Labour leader, for his two kitchens, or at the party’s recent electioneering in a “women-friendly” pink van, his jokes at the opposition’s expense met with the usual roars of raucous approval from his own benches.
But the second biggest target of his needling was rather more surprising – our friends across the Channel. Read more
The spectre of deflation is seldom something to fear, according to economists at the Bank for International Settlements who argue that evidence which shows how price falls persistently cause economic havoc is weak.
The risk of a vicious bout of falling prices is viewed as the biggest threat to the global economic recovery by many of the world’s top economic policy makers. Earlier this year, fears of years of weak price pressures led the European Central Bank to unleash a €1.1trn landmark quantitative easing package in the face of fierce resistance from the German economic and political establishment. Read more
Remarks by the president of Chechnya have sparked theories that Boris Nemtsov, the assassinated Russian opposition politician, fell victim to infighting in an opaque regime
Policy makers in some of the world’s largest economies have devalued their currencies in a bid to boost export-led recoveries, but there is evidence lower exchange rates do not always work
An unprecedented environmental protest movement in a remote part of Algeria has disrupted the country’s multibillion-dollar shale programme, and is making political waves across the region
Four years after a nuclear disaster, Fukushima’s farmers are struggling to sell their produce despite decontamination efforts as the region tries to stand on its own two feet (WSJ)
Win or lose in Tikrit, Isis can only be defeated in Iraq by the Sunnis, writes Hassan Hassan (The Guardian) Read more
China’s leaders are looking to the internet to offset sagging economic growth.
At the annual meeting on Thursday of the National People’s Congress, China’s legislature, internet and ecommerce merited a dozen mentions, culminating in Prime Minister Li Keqiang announcing an “internet-plus action plan”.
That, he promised, would “integrate the mobile internet, cloud computing, big data and the internet of things with modern manufacturing, to encourage the healthy development of ecommerce, industrial networks, and internet banking, and to guide internet based companies to increase their presence in the international market”.
A former colleague on the FT (no names, but he now runs the UK’s Office for Budget Responsibility) used to muse that a useful all-purpose headline for any story about an emerging market economy was “[Insert Name Of Country Here]: Structural Reform?”
Putting “Greece” into that formula after Syriza’s resounding victory in Sunday’s election, where do we stand? Every pundit in Europe is retailing some version of the insightful observation that it is all about whether Syriza — and its leader, Alexis Tsipras, Greece’s new prime minister (above) — can be induced to do enough structural reform to buy the fiscal leeway and debt relief it wants.
The problem with this view is that “structural reform” is a crude and unhelpful term. Read more
Holding the World Economic Forum in a ski resort in the Alps sounds like an eccentric decision. In fact, the choice of Davos as a location for the WEF is very clever. It is such a pain to get here that once the delegates are in Davos, they feel compelled to stay. If the WEF took place in a big city, there would be a lot more flitting in-and-out. Read more
It is a momentous day for the European Central Bank as it launches full-scale government bond buying. Mr Draghi started speaking at 13.30 GMT and the press conference usually lasts for an hour.
By Ralph Atkins and Lindsay Whipp
November’s press conference by European Central Bank President Mario Draghi comes a week after the US Federal Reserve ended its monetary stimulus programme, and the Bank of Japan put a rocket booster under its already large volumes of bond buying.
In contrast, investors and analysts are expecting the ECB’s monetary policy committee to sit tight this month. It has announced that rates remain at a record low and predictions are for no change in its private-sector asset buying programme. But with eurozone deflationary fears showing no signs of receding in the stagnating economy, investors will be wanting Draghi to instil confidence in markets that he has his own bazooka ready to fire. By Lindsay Whipp and Emily Cadman