inflation

President Biden’s Budget Will Raise Taxes and Federal Debt

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President Biden's Budget Will Raise Taxes and Federal Debt

President Biden has released his fiscal year 2025 budget request, which includes massive tax hikes and harmful healthcare policies. The budget proposal increases taxes by .5 trillion and includes raising the corporate tax rate and implementing a global minimum tax for multinational corporations. The budget also expands on harmful healthcare policies and seeks to restore funding to the IRS. The budget projects that the federal deficit will continue to grow, reaching trillion by 2034. Interest on the debt will exceed defense spending beginning in FY 2025. The President’s budget would hurt taxpayers and the economy, and Congress should reject it in favor of a fiscally responsible budget.

UK businesses trim hiring and pay plans, Lloyds says

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UK businesses trim hiring and pay plans, Lloyds says

British businesses are reducing their plans for staffing and wage increases due to the impending minimum wage rise in April. The Lloyds Bank Business Barometer showed a decrease in the measure of staffing plans and the share of firms expecting to increase wages by 3% or more. The minimum wage in Britain will rise by nearly 10% next month, impacting businesses, especially smaller firms. The Resolution Foundation think tank highlighted the success of Britain’s introduction of the minimum wage 25 years ago in increasing the pay of low earners.

European Central Bank: inflation tolerance and the last mile

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European Central Bank: inflation tolerance and the last mile

Inflation in the euro area has declined from high levels in recent years, with a rate expected to be 2.3% in 2024 compared to 8.4% in 2022 and 5.6% in 2023. The European Central Bank (ECB) is discussing the concept of inflation tolerance as a way to navigate uncertainty and provide guidance on when action will be taken based on inflation levels. The ECB may consider setting an inflation range within which no action is needed, with action required as inflation approaches 3%. This approach aims to balance the need for a precise inflation target with the reality of uncertainty in the economic system.

Euro pressure as ECB officials hint at rate cut in June

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Euro pressure as ECB officials hint at rate cut in June

The EURUSD pair maintained its position around 1.0770 on Friday, facing downward pressure due to the European Central Bank officials suggesting a probable interest rate cut in June. Weaker-than-expected retail sales data from Germany also contributed to the Euro’s decline. Meanwhile, the US Dollar Index (DXY) strengthened, nearing 104.60, driven by annualised economic expansion in the United States and hawkish statements from a Federal Reserve official.

UBS flags commercial real estate downturn as a top risk

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UBS flags commercial real estate downturn as a top risk

UBS flagged the downturn in commercial real estate markets as one of the top and emerging risks facing the Swiss bank, with higher borrowing costs and a post-pandemic slump in demand for office space affecting the sector.

UK economy went into recession last year, data confirms

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UK economy went into recession last year, data confirms

Britain’s economy entered a shallow recession last year, with GDP shrinking by 0.1% in the third quarter and 0.3% in the fourth. The economy is expected to grow by just 0.25% this year, with inflation moving towards the point where the Bank of England can start cutting rates. Household real disposable income grew by 0.7%, prompting consumers to potentially increase spending and support the economy. The current account deficit in the fourth quarter was 21.18 billion pounds, equivalent to 3.1% of GDP.

ANALYSIS-Pasta makers cheer Turkey as its durum wheat flows abroad

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ANALYSIS-Pasta makers cheer Turkey as its durum wheat flows abroad

Turkey has become a significant exporter of durum wheat, helping to fill a supply gap caused by drought in Canada. Turkish exports have kept durum prices stable and competitive, benefiting pasta producers and consumers. Turkey’s strong crop yields and competitive prices have made it a key player in the global durum market, with analysts predicting continued substantial exports in the coming years. The country’s role in supplying durum wheat may become even more crucial as Europe plans to use tariffs to limit grain imports from Russia.

Chocolate prices to keep rising as West Africa’s cocoa crisis deepens

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Chocolate prices to keep rising as West Africa’s cocoa crisis deepens

– Janet Gyamfi’s farm in western Ghana, which was covered with nearly 6,000 cocoa trees, has been destroyed by illegal gold miners, leaving less than a dozen trees remaining.
– Ghana and Ivory Coast, the world’s top cocoa producers, are facing catastrophic harvests due to illegal mining, climate change, mismanagement, and disease.
– Ghana’s cocoa plantations are being infected with swollen shoot virus, leading to long-term decline in production.
– Cocoa prices have doubled this year, leading to higher chocolate prices for consumers.
– Illegal gold mining is rapidly expanding in Ghana, leading to the destruction of cocoa plantations.
– Cocobod, the regulatory body for cocoa in Ghana, is struggling to address the challenges facing the sector, including disease and climate change.
– Experts predict that Latin American countries like Ecuador will overtake Ghana as the world’s number 2 cocoa producer by 2027.

Sterling bows to dollar strength after UK GDP data

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Sterling bows to dollar strength after UK GDP data

The pound eased after data confirmed the UK economy entered recession in the second half of last year.

Turkey opposition aims to hit back at Erdogan in local elections

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Turkey opposition aims to hit back at Erdogan in local elections

The content discusses the upcoming local elections in Turkey, with a focus on the close race between Istanbul Mayor Ekrem Imamoglu and the AKP candidate, former minister Murat Kurum. The outcome of the elections could reinforce President Erdogan’s control or signal change in Turkey’s political landscape. The economy, Kurdish and Islamist voters, and Erdogan’s rhetoric against Israel are factors influencing the voters’ decisions. Imamoglu’s victory could revitalize the opposition, while Erdogan aims to extend his power to local administrations.