UK Private Sector Grows at Fastest Pace Since Trump Tariffs Hit
The UK private sector expanded at a marginally faster pace in June, helping ease worries of an economic contraction in the second quarter, according to a closely watched survey.
S&P Global said its purchasing managers' index rose to 50.7 in June, up from 50.3 in May and above analyst expectations, according to provisional estimates published Monday. The reading is slightly above the 50 threshold indicating expansion, and marks a recovery to levels last seen in March, just before Donald Trump's tariff announcements hit confidence and slashed exports to the US.
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Newsweek
27 minutes ago
- Newsweek
'Mass Layoff' Provision in Trump Bill Sparks Alarm: 'Deeply Concerning'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A provision in the Senate budget bill would allow for millions of dollars to go directly toward President Donald Trump and the administration's ability to lay off federal workers without the consent of Congress. It is a move that Ben Olinsky, senior vice president of Structural Reform and Governance at the Center for American Progress, called "deeply, deeply concerning." The provision, written by the Senate Committee on Homeland Security and Governmental Affairs, would give $100 million to the Office of Budget Management (OMB), according to Government Executive. The office is run by Project 2025 author Russ Vought, a proponent of mass government layoffs, which are a central tenet of Project 2025. President Donald Trump talks with reporters in the Oval Office of the White House on June 18, 2025, in Washington. President Donald Trump talks with reporters in the Oval Office of the White House on June 18, 2025, in Washington. Alex Brandon/AP Photo Olinsky referenced the lawsuits by federal employees fired by Department of Government Efficiency (DOGE) cuts, telling Newsweek: "[This bill is] exactly the kind of thing that the president has been trying to do, I would say, illegally, as he seeks to shut down departments or agencies, or limit [agencies] to a handful of staff down from 1000s and do large mass layoffs and other kinds of cuts to entire functions or programs." Those in favor of the bill have said: "Any president should have the ability to clear the waste he or she has identified without obstruction." Newsweek contacted Senator Rand Paul, a Kentucky Republican and chairman of the Senate Committee on Homeland Security and Governmental Affairs, via email for comment. Why It Matters Many of the people affected by mass federal layoffs initiated by DOGE at the start of Trump's second term are now in court as they were made without congressional approval. The provision would allow for federal employees to be fired with little to no legal recourse. Olinsky told Newsweek that it would lead to current and future distrust in the government by federal workers. Federal work used to be a lesser paid but significantly more stable line of work. If the provision passes, federal work will be seen as a much less realistic plan for long-term employment and will result in bright and capable Americans choosing to work in the private sector. What To Know The provision of the bill, which is the Senate's version of Trump's "Big Beautiful Bill" passed by the House, appears in a section about government spending and reorganization by the Senate Homeland Security and Governmental Affairs Committee. It would revitalize a provision last used in 1984 that allows the president to reorganize the federal government. However, Olinsky explained to Newsweek that it differs from the 1984 provision in one significant way. "Those previous reorganization authorities that were granted to the president still had a role for Congress," he said. Congress then had a certain amount of time to either approve or disapprove of the plan, and that determined whether the president's plan could go into effect. "In the current reorganization language, it says that most of the statute that's currently on the books, or that was on the books through 1984, will not apply," Olinsky said. "And it basically says the president can put together a reorganization plan, and as long as it's making government smaller, it is deemed approved. "So, there would be no further review by Congress, no further action. It would simply be automatic. It is approved by this language without [Congress] having seen it first. That is dramatically concerning to me." Senator Rand Paul, chair of the Senate Committee on Homeland Security and Governmental Affairs, talks with reporters in the Russell building on June 17, 2025, in Washington. Senator Rand Paul, chair of the Senate Committee on Homeland Security and Governmental Affairs, talks with reporters in the Russell building on June 17, 2025, in Washington. Tom Williams/CQ Roll Call via AP Images Olinsky added: "The executive actions that the Trump administration has been taking are absolutely taking Project 2025, the most extreme parts of it, and putting them into effect. And, actually going much further in many cases." Project 2025 says that the president should be able to " employees." It speaks in broad terms about federal employees, whom its authors see as part of the "federal bureaucracy." "Federal employees are often ideologically aligned—not with the majority of the American people, but with one another, posing a profound problem for republican government, a government "of, by, and for" the people," Project 2025 says. Olinsky said that people fired as a result of DOGE cuts could continue their suits in court, but anyone fired under the new provision would not have a case against the government. He said the only means of legal recourse for fired employees would be if mass firings reduced the government's ability to monitor enforcement functions. For example, if the White House fired every member of an agency that oversaw labor standards, someone could potentially sue and say their firing undermined government enforcement work. Other critics of this move say it directly undermines Congress' ability to govern, as government spending is one of Congress' primary responsibilities. Olinsky said there is a chance the Senate parliamentarian rules that the provision defies the Byrd Rule, which says that all reconciliation packages have to focus on budget issues and cannot stray into other parts of government. Olinsky believes the provision violates the Byrd Rule, but whether enough members of the Senate and/or the parliamentarian believe the same is "an open question," he said. What People Are Saying Ben Olinsky, senior vice president of Structural Reform and Governance at the Center for American Progress, told Newsweek: "This [bill] would basically give [Trump] carte blanche to refashion the entire federal government in ways that he likes. "Now, even under this language, it basically means you have to make the government smaller, not larger. But there's a lot of playing you could do to assist with [Trump's] priorities and stifle functions of government that he just doesn't like. "This should be deeply, deeply concerning to anyone." The Senate Committee on Homeland Security and Governmental Affairs: "This provision would reestablish the authority for a president to reorganize government as long as these plans do not result in an increase in federal agencies and the plan does not result in an increase in federal spending." What Happens Next The House does not have a similar rule, so if the provision remains in the Senate version of the bill, it cannot be removed through a parliamentarian complaint to the Bird Rule by the House.
Bloomberg
27 minutes ago
- Bloomberg
Irish Regulator Warns Against Caving to Pressure on Bank Rules
Ireland's top banking supervisor warned of a need to stick with high standards of financial regulation particularly now when there is increasing pressure to ease them amid trade wars, geopolitical tensions and fears for global growth. 'If we're trying to chase growth with a deregulation engine I don't think that's going to end well for anybody,' Mary-Elizabeth McMunn, Deputy Governor for Financial Regulation at the Central Bank of Ireland, said at Bloomberg's Future of Finance event in Dublin. 'It also can't be that you simplify things just to such a degree that you really fail to capture complex risks.'
Bloomberg
36 minutes ago
- Bloomberg
Trump Warns Against Rising Oil Prices Following Iran Attack
President Donald Trump demanded that energy producers keep down oil prices following US military strikes on Iran, which drove prices higher amid fears the attack could provoke a wider conflict in the Middle East. 'EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!' Trump posted Monday on social media.
