Extinction Rebellion
The end is nigh
Activists have once more brought disruption to the streets of major cities across the world, in protest against government inaction over climate change. Hundreds of protesters have been arrested in London, where some have blocked major roads, camped and glued themselves to buildings. The organisation is targeting net zero carbon emissions by 2025 and wants the creation of a citizens’ assembly to tackle climate change – it will demonstrate in London until 19 October. Prime minister Boris Johnson is reported as having described the activists as “uncooperative crusties” at a book launch this week.
US adds to blacklist
Trade war escalates
The US Department of Commerce added 28 Chinese governmental and commercial organisations to its Entity List “for engaging in or enabling activities contrary to the foreign policy interests of the United States”. The US has taken the action in response to Chinese human rights violations against the Uighur people and other predominantly Muslim ethnic minorities in the Xinjiang Uighur Autonomous Region. “This action will ensure that our technologies, fostered in an environment of individual liberty and free enterprise, are not used to repress defenceless minority populations,” said Secretary of Commerce Wilbur Ross.
False dawn for Deutschland
Export-led slump
The prospect of the UK exiting the European Union without a deal might not be uppermost in Angela Merkel’s mind, as evidence mounts that Germany’s economy could be heading into recession. Although the country’s industrial output rose unexpectedly in August, the export-dependent manufacturing sector continues to struggle. New orders from German factories fell by 6.7 per cent in the year to August, a reflection of faltering aggregate demand in the global market. But the country’s economic problems aren’t solely linked to its reliance on export markets. Conservative monetary policy, relatively high savings rates and low consumer credit levels have previously stymied attempts to artificially stimulate the economy.
Trump defies inquiry
Letter sent to Democrats
The White House has told Democrat leaders that it will not cooperate with an impeachment inquiry against President Donald Trump. In a letter to the leaders, White House counsel Pat Cipoline derided the inquiry as “constitutionally invalid” and labelled it as an attempt to reverse the outcome of the 2016 presidential election and influence next year’s contest. The Democrats have launched an investigation into whether President Trump withheld aid to Ukraine in a bid to influence the country to investigate Joe Biden, who is a candidate in the Democrat primaries. In response to the letter, Nancy Pelosi, Speaker of the House of Representatives, told Mr Trump on Twitter: “You will be held accountable”.
Unilever acts on packaging
Plastic eco credentials
Consumer products heavyweight Unilever (ULVR) has committed to reducing its use of new plastic by half by 2025 in a move that could help boost global demand for recycled material, particularly if its multinational peers follow suit. The move will compel the Anglo-Dutch group to collect and process around 600,000 tonnes of plastic annually, while it remains on track to meet a previous commitment to ensure that all its plastic packaging is reusable, recyclable or compostable by 2025. It also comes amidst accusations that palm oil from an illegal plantation inside an Indonesian rainforest has made it into the supply chain.
China builds gold reserves
Safety in numbers
A side-effect of the ongoing trade spat between the US and China is that Beijing has stepped up its gold purchases, adding upwards of 100 tonnes since the People’s Republic resumed buying at the tail end of 2018. Global economic uncertainties have contributed to increased clamour for bullion, particularly among emerging market economies, although it is also being driven by auspicious buying conditions in India, along with a concerted push to undermine the primacy of the US dollar in international trade.
OECD unveils tax proposal
FAANGs beware
The OECD has published a potential framework with the aim of ensuring significant multinational corporations, such as Facebook and Google, pay tax wherever they generate profits. The proposal would reallocate some profits and corresponding taxing rights to countries where these businesses operate, even if they lack a physical presence there. The OECD would see the creation of new rules tightening up where tax should be paid and what portion of profits should be taxed. The proposal is now open to a public consultation process.
Chart of the week
Over the second quarter of 2019, UK productivity fell at its sharpest rate in five years, according to the Office for National Statistics, with dire services and manufacturing figures contributing to the UK’s ongoing ‘productivity puzzle’. Productivity, as measured by output per hour, fell at an overall rate of 0.5 per cent compared with the same period last year – the biggest drop since the second quarter of 2014, when the metric lowered by 0.6 per cent. Services and manufacturing output fell by 0.8 per cent and 1.9 per cent, respectively.
Over the second quarter of 2019, UKproductivity fell at its sharpest rate in five years, according to the Office for National Statistics, with dire services and manufacturing figures contributing to the UK’s ongoing ‘productivity puzzle’. Productivity, as measured by output per hour, fell at an overall rate of 0.5 per cent compared with the same period last year – the biggest drop since the second quarter of 2014, when the metric lowered by 0.6 per cent. Services and manufacturing output fell by 0.8 per cent and 1.9 per cent, respectively.
