Europe began a new campaign to shield economies from the coronavirus as the region’s two main central banks either delivered or signaled action to avoid a 2008-style crisis, and German Chancellor Angela Merkel promised to do “whatever is necessary”.
No capitalist economy has yet organised for itself arrangements that ensure labour market wages are perceived universally as fair; as day follows night, there will always be a class of workers convinced that their pay — or, for the managerial classes, salary — does not reward sufficiently the value of their labour, and that another group is laughing all the way to the bank clutching needlessly generous remuneration packages.
The US Federal Reserve has held interest rates steady but signalled possible rate cuts of as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation.
Medha Singh and Susan Mathew European Central Bank chief Mario Draghi’s dovish remarks — signalling that the ECB will ease policy again if inflation fails to accelerate — sent European stocks to six-week highs while news that the US and China would resume trade talks at the G20 summit also boosted sentiment.
Upcoming national elections across Europe could ratchet up the external pressure on the Irish economy - already under threat from Brexit, potential global trade wars, and US corporate tax policy changes - an economist has warned.
Boeing and Brexit vied for attention on global financial markets, as sterling slumped as the political woes of UK prime minister Theresa May appeared to deepen, while the planemaker’s shares came under renewed pressure after countries closed airspace to the 737 Max.
The US Federal Reserve raised interest rates last night and said it was keeping the core of its plan to tighten monetary policy intact even as central bank officials said they would likely slow the pace of further rate increases next year.