1 hour ago Trump’s war on Fed is ‘serious danger’ to world economy, says ECB head

Undermining independence of central bank will affect the US and other countries, says Christine LagardeBusiness live – latest updatesDonald Trump’s attempt to influence the US Federal Reserve could pose a “very serious danger” for the world economy, the head of the European Central Bank has warned.Christine Lagarde, the president of the ECB, said Trump undermining the independence of the world’s most powerful central bank would have an impact for the US and other countries. Continue reading...

Politics

2 h. ago UK manufacturing downturn continues as new orders slide; Trump’s attack on Fed is ‘a serious danger’ – business live

Weak market conditions, US tariffs and downbeat client confidence blamed for drop in factory ordersOuch! The UK manufacturing sector shrank again last month, as factories were hit by weaker demand at home and abroad.The latest monthly poll of purchasing managers across Britain’s manufacturing sector found that new orders and new export business both fell at quicker rates in August, leading to another drop in production volumes.“Production volumes are still showing resilience in the face of global geopolitical uncertainty and US tariff policies, with both July and August having seen only slight contractions that were milder than those suffered earlier in the year. Business confidence has also lifted to a sixmonth high, reflecting hopes that the trading environment is starting to settle down.However, August also saw a steep drop in UK manufacturers’ new orders, with total order books and overseas demand both falling at some of the fastest rates seen over the past two years. Weak marke...

Politics

9 h. ago Investors underestimate Trump’s threat to the Fed, economists warn

FT survey cites fears that president’s assault has caused long-term damage to the US central bank and economy

Events

20 h. ago The Guardian view on the killing of Gaza’s journalists: Israel wants to stop the world from seeing what it’s doing | Editorial

This is the most lethal war for the media in recent times. A generation of journalists is being wiped outDay by day, the death toll rises, the war crimes mount, and the outrage grows. Last Wednesday, the pope demanded that Israel stop its “collective punishment” of Gaza’s population. A day later, António Guterres, the United Nations secretary general, warned that “the levels of death and destruction are without parallel in recent times”. More than 500 UN staff have pressed the human rights chief, Volker Türk, to call it genocide. Half of registered voters in the US have already concluded that that is what Israel is doing in Gaza.The agony is deepening. On Friday, the Israeli military declared famine-hit Gaza City to be a combat zone, intensifying its assault and ending “tactical pauses” that allowed limited – if utterly inadequate – food delivery. Many inhabitants are physically incapable of fleeing again, and fear that they would be no s...

Events

21 h. ago The Guardian view on GCSE resits: admitting the problem is just the first step | Editorial

The low pass rate in compulsory retakes is one of many challenges in 16-19 educationFor years, rigid rules and a shocking failure rate in compulsory GCSE retakes have been one of the exam system’s dirty secrets. At last this dire situation is getting some of the attention it deserves. This year, nearly a quarter of all maths and English language entries in England, Wales and Northern Ireland were for students aged 17 or older on a repeat attempt – with just one in six of those retaking maths managing to pass.By calling this a crisis, Jill Duffy, who heads the OCR exam board, has thrown a spotlight on the problem. But admitting that there is an issue with resits, as officials are now doing, is only the first step. There are differing views about what ought to happen next. Continue reading...

Politics

57 h. ago Trump’s Fed meddling pushes investors closer to their red line

There may be more stress than is apparent, particularly on long-term debt

Politics

68 h. ago The Guardian view on Trump and the Fed: independence is no substitute for accountability | Editorial

The US president’s move against Lisa Cook shows his despotic bent, but the Fed was never democracy’s guardian. It’s time to rethink who really controls moneyDonald Trump’s attempt to sack the Federal Reserve governor, Lisa Cook, is the familiar authoritarian trick of bending institutions to serve the leader’s immediate ends. The widespread condemnation is deserved. This is not some daring experiment in popular control of monetary policy. Yet what should follow censure is reflection. For the furore over Ms Cook has revealed a peculiar reflex: to defend the Fed’s independence as though it were synonymous with democracy itself.But is independence of the Fed, or central banks generally, really that? Eric Levitz at Vox thinks so, or at least that it is close enough. He argues that Congress sets the Fed’s objectives; independence applies only to the means. Without independence, politicians would be free to game rates for votes – as Richard Nixon did in 1972, leaning on the ...

Politics

69 h. ago The Guardian view on Christopher Marlowe: it’s time to read him and honour him | Editorial

England’s second most famous playwright is the star of a new play. But his own works should be staged more, and he should be commemorated betterFor a limited season this autumn, Christopher Marlowe will become a star of the London stage again. Enjoy it while you can, for Marlowe has become an ephemeral figure in Britain’s national culture. His plays, once staples, are now produced only intermittently, if at all. Today, Marlowe is probably better known for his dramatic death, stabbed in a London riverside tavern, than for anything he wrote or for being the literary pioneer that he was.From next week, however, the sexy and brilliant figure of Kit Marlowe will be the centrepiece character, played by Ncuti Gatwa, in Liz Duffy Adams’s two-hander, Born With Teeth, which is currently in previews in the West End, with its offical opening next week. The play teases with the possibility, first reported in this newspaper in 2016, that Marlowe and William Shakespeare, played by Edward...

Politics

3 d. ago The Guardian view on Russia’s strike on Kyiv: Putin is testing Trump’s will and Europe’s resolve | Editorial

The Kremlin sent a clear message with its lethal overnight raid on the Ukrainian capital. Will the US heed it?Wednesday night brought a grim return to Russia’s form: one of the heaviest air raids on Kyiv since the full-scale invasion began. Moscow eased off its strikes on major cities in the run-up to the Alaska summit, and it held off its attack on the Ukrainian capital until Keith Kellogg, the US special envoy, had finished his visit there. But within hours of his departure, at least 18 people, including several children, were dead in an attack on a residential block, and the European Union mission had been severely damaged.Donald Trump periodically suggests that he is drawing a line for Vladimir Putin. Yet each time he appears to set a limit, the Russian president breezes through it. The Kyiv attack shows that it is Mr Putin who is testing the US president. Mr Trump threatened “severe consequences” if Moscow did not immediately agree to a ceasefire – but in Anchora...

Politics

3 d. ago Liz Truss warns there is ‘a reckoning coming’ for central banks, and backs Trump in Fed battle; US growth revised higher amid AI boom – business live

Rolling coverage of the latest economic and financial news, as former PM criticises Bank of England and claims UK faces ‘economic doom loop’People in the UK: how have you been affected by the rise in food prices?The FCA’s investigation into Drax comes five months after the company’s former top lobbyist accused it of “misleading the public, government and its regulator” over its sourcing of wood for biomass pellets.In a claim for unfair dismissal, Rowaa Ahmar, Drax’s former head of public affairs, said evidence suggested Drax was “unable to prove that it only sourced sustainable wood for its biomass, and that it was in fact using unsustainable wood”. Continue reading...

Events

4 d. ago Liz Truss backs Trump attacks on Fed and says ‘reckoning’ on way for central banks

Britain’s shortest-serving prime minister also critical of Bank of England and European Central BankBusiness live – latest updatesDonald Trump’s assault on the independence of the US Federal Reserve has been backed by Liz Truss, the shortest-serving British prime minister in history, who was ousted after a meltdown in the financial markets.The former Conservative leader, who during her 49 days in power in late 2022 railed against the “deep state” and the Bank of England for undermining her before she was ejected from office by her own party, said a “reckoning” was coming for the world’s most powerful central banks. Continue reading...

Politics

4 d. ago Liz Truss warns there is ‘a reckoning coming’ for central banks, and backs Trump in battle with Fed – business live

Rolling coverage of the latest economic and financial news, as former PM criticises Bank of England and claims UK faces ‘economic doom loop’People in the UK: how have you been affected by the rise in food prices?The FCA’s investigation into Drax comes five months after the company’s former top lobbyist accused it of “misleading the public, government and its regulator” over its sourcing of wood for biomass pellets.In a claim for unfair dismissal, Rowaa Ahmar, Drax’s former head of public affairs, said evidence suggested Drax was “unable to prove that it only sourced sustainable wood for its biomass, and that it was in fact using unsustainable wood”. Continue reading...

Events

4 d. ago The Guardian view on UK attitudes to Europe: Labour is following where it could be leading | Editorial

There are signs of ministerial courage in making the case for closer ties to our neighbours, but the government could go further and fasterBritain’s relationship with the European Union was not a prominent issue in national debate when Sir Keir Starmer became prime minister, and Downing Street has striven to keep it that way. Labour strategists have seen Europe as a fissile topic, and Sir Keir’s opposition to Brexit in the 2016 referendum as a liability with swing voters. The prime minister has moved Britain closer to Europe, but in timid increments. The summit that formally “reset” relations early this year was long on statements of ambition, but short on substance. The government’s private recognition that economic logics impel Britain back into a European orbit has been in constant tension with fear of making that case in public.The balance now appears to be shifting. In a speech on Wednesday, Nick Thomas-Symonds, the Cabinet Office minister responsible for EU relations, made the...

Politics

4 d. ago The Guardian view on France’s latest political crisis: François Bayrou’s gamble on austerity does not deserve to pay off | Editorial

The likely fall of another prime minister is a further blow to Emmanuel Macron’s becalmed presidency. A change in priorities is neededFollowing a startling victory for Marine Le Pen in European elections last June, the French president, Emmanuel Macron, foolishly called a snap legislative poll. The idea was to give voters a salutary wake-up call, daring them to repeat their embrace of Ms Le Pen’s far-right National Rally party in a domestic election. The unanticipated result was a suddenly deadlocked parliament, in which the influence of the National Rally and the left significantly increased, and a lame-duck status for Mr Macron’s second term.That failed gamble has now led to another, which appears equally doomed. This week, Mr Macron’s fourth prime minister in two years put the future of his minority government on the line, in an attempt to pass a deeply unpopular budget this autumn. François Bayrou, intending to deliver his own wake-up call to MPs, has unexpectedly called a confi...

Politics

5 d. ago ‘Zero self awareness’: Newsom trolls Trump deputy’s description of ‘crooks’ in government over Lisa Cook ouster

Trump’s ‘firing’ of Fed board governor scares Wall Street and sets up another protracted court battle

Politics

5 d. ago Trump’s attack on Fed shifts market bets on interest rates and inflation

Gap between long-term and short-term borrowing costs reaches its widest in three years

Economics

5 d. ago The Guardian view on Nigel Farage’s mass deportation plan: Trumpism in a union jack | Editorial

Reform UK’s leader isn’t offering border control. He’s dismantling democratic constraints and replacing them with fear and authoritarian fictionNigel Farage wants you to believe Britain could deport 288,000 people annually. That’s nearly 800 a day – 30 times the current rate of asylum-related returns. This is a fantasy concealing his real aim: to destroy public trust in democratic institutions, crush legal constraints and turn fear into power. Mr Farage isn’t trying to fix the asylum system. In fact, he wants to dismantle the political framework necessary to achieve that goal: the treaties, parliamentary conventions and centuries of legal protections. In their place, a Reform government would operate by executive fiat cloaked in nationalist rhetoric.“Operation Restoring Justice” is a louder, more extreme version of Rishi Sunak’s failed 2023 strategy to detain everyone, deport everyone and process no one. This led to a backlog of unheard asylum claims, spiralling hotel costs and publ...

Politics

5 d. ago London stocks caught in global pullback as Trump pursues Fed crackdown

London stocks caught in global pullback as Trump pursues Fed crackdown  Reuters

Politics

5 d. ago Federal Reserve governor Lisa Cook to sue Trump administration over its attempt to fire her

Cook’s attorney said the president has ‘no authority’ and ‘lacks any factual or legal basis’ to fire the Fed governorThe Federal Reserve governor Lisa Cook will sue the Trump administration over its bid to fire her over unconfirmed allegations of mortgage fraud, her attorney has said.Donald Trump announced he was firing Cook on Monday night, in an extraordinary move that marks the latest escalation in the US president’s attack on the central bank’s independence. Continue reading...

Politics

5 d. ago Who is Lisa Cook and can Trump actually fire the Fed governor he accuses of mortgage fraud?

President Trump has demanded the removal of the Biden appointee in what would mark an unprecedented move against the central bank's leadership

Politics