Economics You Can Actually Use
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American’s Turkeys Are Getting Colder – Brace for a Dim Christmas
The latest US consumer sentiment index dropped to a three-and-a-half-year low, with Americans worried about the future of the US economy. With the longest US government shutdown, Americans are feeling the pinch, with the lowest-income households suffering the most. The change in consumer shopping behaviour is seen in the fall of the SP 500 consumer…
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BoE Policymaker Signals Stop to Rate Cuts, Which May Fire Back
Megan Greene, one of the Bank of England’s (BoE) policymakers, suggested the best way to curb higher inflation would be to skip “some rounds in terms of rate cuts”. Currently, the base rate is at 4% following from last September meeting with inflation at 3%, nearly double the BoE’s target of 2%. There are signs…
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When Can We Learn from Our Lessons?
US banks are set for a tasty week ahead of deregulation, with Trump alleviating banks with deregulation. A potential of $2.6 trillion can be unlocked if the US government decides to loosen rules related to the capital buffer, which was introduced post-2008 financial crisis. Capital buffer consists of assets and cash, used to absorb losses…
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UK Saves Up whilst the G7 Parties Out
Since 2020, UK household spending has only increased by 1.1% and 3% per capita. Compared to neighbouring countries such as the US (12.7%) or Italy (3.2%), it is clear that households are looking to save rather than spend. Before COVID, household expenditure accounted for two-thirds of the UK’s GDP, which steadily grew for 6 years.…
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“Consumers Will Pay” – AutoZone Chief Executive
Since the reciprocal day, US producers have shouldered higher tariff costs from consumers. However, this will change since recent data highlights the rise in price for some products. For example, audio equipment up by 14%, dresses up by 8% and hardware & lights up by 5%. Ashley Furniture, the world’s largest furniture manufacturer, pre-announced before…
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Creditors offer £4 billion for a 10 % Stake in Thames Water – A Messy Ending for Households
Creditors of Thames Water have offered a 25% discount on written-off debt in exchange for ownership and lenient targets. Lower limits on sewage spills and water leaks are demands that the creditors are seeking from Ofwat, the UK’s water regulator. If approved, a £3.15 billion equity and £2.25 billion debt creation will be supplied to…
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Winemaker Faces Heavy Competition – Why Your Favourite Wine May Get a Price Hike
UK winemaker Chapel Down faces slower demand with consumers switching to cheaper wine brands. With a £32 million winery plan scrapped, poor weather and household substitution have hit Chapel Down, with the winery likely to suffer losses next year. With tougher supermarket alternatives, it is evident that Chapel Down’s sparkling wine sales fell in 2024…
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“Over 100 Applicants For A Part Time Job” – What’s Wrong With The UK’s Job Market
With last year’s October budget in full effect, it is clear that businesses are having to reduce labour hours or cut staff to remain competitive and survive. British clothing brand Next stated that whilst vacancies have fallen by over 35% over the past two years, the number of applicants per job has risen by 76%.…
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Direct Interventions Save Argentina’s Peso for Now
Argentina’s central bank stepped in to avoid the peso falling below its lower limit of 1475 pesos to the dollar. It’s the first time the central bank has directly intervened since President Javier Milei started to partially float the currency in April. A lower exchange rate would mean domestic businesses paying more to import products,…
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Persistent Inflation Continues To Float Around The Air
Inflation remained at 3.8% in August, the same as July, showing it’s still a threat to the economy. Food and non-alcoholic drinks prices rose from 4.9% to 5.1%, higher than predicted by analysts. The ONS stated that there was a small rise in prices for vegetables, milk, cheese and eggs and fish. These rises were…
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