Latest news with #economicstability
Times
11 hours ago
- Business
- Times
Labour's tax strategy under fire as Reeves defends fiscal rules
The chancellor has defended Labour's record as the party of business and its fiscal rules after controversial tax rises, saying the government had stabilised the economy and enabled interest rate cuts. Rachel Reeves told The Times CEO Summit that the government had achieved its 'number one job' to return economic stability after the 'turbulence' of the 'previous decade'. The contentious decision to raise employers' national insurance contributions in October's budget provoked a sharp backlash from business leaders, who had been courted by senior Labour figures in the run-up to July's general election. Bosses have since warned of hiring and investment cuts, while the decision is still being felt in the jobs market and in sentiment.
Yahoo
2 days ago
- Business
- Yahoo
Chair's Summary
KANANASKIS, AB, June 17, 2025 /CNW/ - The Leaders of the Group of Seven (G7) gathered in Kananaskis, Alberta, from June 15-17, 2025, with the objective of building stronger economies by making communities safer and the world more secure, promoting energy security and accelerating the digital transition, as well as fostering partnerships of the future. Five decades after its founding in 1975, the G7 continues to demonstrate its value as a platform for advanced economies to coordinate financial and economic policy, address issues of peace and security, and cooperate with international partners in response to global challenges. G7 Leaders focused on economic developments. In a context of rising market volatility and shocks to international trade, as well as longer-term trends toward fragmentation and global imbalances, they discussed the need for greater economic and financial stability, technological innovation, and an open and predictable trading regime to drive investment and growth. They considered ways to collaborate on global trade to boost productivity and grow their economies, emphasizing energy security and the digital transition. They acknowledged that both are underpinned by secure and responsible critical mineral supply chains and that more collaboration is required, within and beyond the G7. Leaders undertook to safeguard their economies from unfair non-market policies and practices that distort markets and drive overcapacity in ways that are harmful to workers and businesses. This includes de-risking through diversification and reduction of critical dependencies. Leaders welcomed the new Canada-led G7 initiative – the Critical Minerals Production Alliance – working with trusted international partners to guarantee supply for advanced manufacturing and defence. G7 Leaders expressed support for President Trump's efforts to achieve a just and lasting peace in Ukraine. They recognized that Ukraine has committed to an unconditional ceasefire, and they agreed that Russia must do the same. G7 Leaders are resolute in exploring all options to maximize pressure on Russia, including financial sanctions. The G7 met with President of Ukraine, Volodymyr Zelenskyy, and Secretary General of the North Atlantic Treaty Organization, Mark Rutte to discuss their support for a strong and sovereign Ukraine, including budgetary defence and recovery and reconstruction support. G7 Leaders reiterated their commitment to peace and stability in the Middle East. They exchanged on the evolving situation, following Hamas's terrorist attacks against Israel on October 7, 2023, and the active conflict between Israel and Iran. Leaders discussed the importance of unhindered humanitarian aid to Gaza, the release of all hostages and an immediate and permanent ceasefire. Leaders also talked about the need for a negotiated political solution to the Israeli-Palestinian conflict that achieves lasting peace. Leaders affirmed Israel's right to defend itself, and were clear that Iran can never have a nuclear weapon. They underlined the importance of protecting civilians. They expressed their readiness to coordinate to safeguard the stability of international energy markets. They urged that the resolution of this crisis leads to a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza. G7 Leaders released a statement on recent developments between Israel and Iran. Leaders highlighted the importance of a free, open, prosperous and secure Indo-Pacific, based on the rule of law, and discussed growing economic cooperation with the region. They stressed the importance of constructive and stable relations with China, while calling on China to refrain from market distortions and harmful overcapacity, tackle global challenges and promote international peace and security. Leaders discussed their ongoing serious concerns about China's destabilizing activities in the East and South China Seas and the importance of maintaining peace and stability across the Taiwan Strait. They expressed concern about DPRK's nuclear weapons and ballistic missile programs and the need to jointly address DPRK cryptocurrency thefts fueling these programs. The need to resolve the abductions issue was also raised. Leaders acknowledged the links between crisis theatres in Ukraine, the Middle East and Indo-Pacific. Leaders discussed other instances of crisis and conflict, including in Africa and Haiti. The G7 Leaders underscored their resolve to ensure the safety and security of communities. They condemned foreign interference, underlining the unacceptable threat of transnational repression to rights and freedoms, national security and state sovereignty. Leaders highlighted the importance of ongoing collaboration to promote border security and counter migrant smuggling and illicit synthetic drug trafficking, noting recent successes. They stressed the need to work with countries of origin and transit countries. Leaders discussed the impacts of increasingly extreme weather events around the world. They highlighted the need for more international collaboration to prevent, fight and respond to wildfires, which are destroying homes and ecosystems, and driving pollution and emissions. The G7 welcomed participation in the Summit by the President of South Africa, Matamela Cyril Ramaphosa, President of Brazil, Luiz Inácio Lula da Silva, President of Mexico, Claudia Sheinbaum, President of the Republic Korea, Lee Jae-myung, Prime Minister of India, Narendra Modi, and Prime Minister of Australia, Anthony Albanese, as well as UN Secretary General, António Guterres, and President of the World Bank, Ajaypal Singh Banga. Together, they identified ways to collaborate on energy security in a changing world, with a focus on advancing technology and innovation, diversifying and strengthening critical mineral supply chains, building infrastructure, and mobilizing investment. They discussed just energy transitions as well as sustainable and innovative solutions to boost energy access and affordability, while mitigating the impact on climate and the environment. They talked about the consequences of growing conflicts for shared prosperity, including energy security, and the need to work towards a shared peace. Leaders and guests had a productive discussion on the importance of building coalitions with reliable partners – existing and new – that include the private sector, development finance institutions and multilateral development banks, to drive inclusive economic growth and advance sustainable development. The upcoming United Nations' Fourth International Conference on Financing for Development was raised as an opportunity to continue these discussions, including on private capital mobilization. G7 Leaders agreed to collaborate with partners on concrete outcomes that deliver for everyone. To this end, they agreed to six joint statements. Their commitments included: Securing high-standard critical mineral supply chains that power the economies of the future. Driving secure, responsible and trustworthy AI adoption across public and private sectors, powering AI now and into the future, and closing digital divides. Boosting cooperation to unlock the full potential of quantum technology to grow economies, solve global challenges and keep communities secure. Mounting a multilateral effort to better prevent, fight and recover from wildfires, which are on the rise around the world. Protecting the rights of everyone in society, and the fundamental principle of state sovereignty, by continuing to combat foreign interference, with a focus on transnational repression. Countering migrant smuggling by dismantling transnational organized crime groups. G7 Leaders welcomed the endorsement by many outreach partners of the Critical Minerals Action Plan and the Kananaskis Wildfire Charter. Discussions at the Kananaskis Summit were informed by the recommendations of the G7 Gender Equality Advisory Council (GEAC), which stressed the social and economic benefits of gender equality, and of all G7 engagement groups. The G7 remains committed to working with domestic and international stakeholders and partners, including local governments, Indigenous Peoples, civil society, industry and international organizations, to advance shared priorities. The G7 will continue its work under Canada's presidency throughout 2025, and looks forward to France's leadership in 2026. SOURCE Prime Minister's Office View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Zimbabwe says gold-backed currency stable but investor doubts persist
HARARE/JOHANNESBURG, June 17 (Reuters) - Zimbabwe's gold-backed currency now has more than 100% reserve cover and is stable, according to the central bank, but doubts over its credibility remain, underscored by a persistent premium in the parallel market. The Reserve Bank of Zimbabwe on Monday kept its benchmark rate unchanged at 35%, citing a stable exchange rate, opens new tab as one of the reasons, and reported total reserves of $701 million. The bank said the portion of transactions carried out using the Zimbabwe Gold (ZiG) currency surged to 43% in May from 26% in April 2024, the month it was introduced. Decades of economic instability and currency devaluations mean most people still use the U.S. dollar for most purchases. But the authorities are hoping the ZiG's gold backing will give Zimbabweans the confidence to adopt it for everyday transactions. "ZiG is our national currency, and as the central bank, we are committed to ensuring its success by maintaining all the fundamental characteristics of sound money, including its function as a reliable store of value," Reserve Bank Governor John Mushayavanhu wrote in response to Reuters' questions. "The Reserve Bank has learned from previous currency failures that maintaining optimum money supply and ensuring monetary stability is vital," he added. Despite the bank's assurances, the gap between the official exchange rate and parallel market rate remains about 20%. "The rate has been stable for more than three months," said black-market trader Pearson Tambudze, attributing the stability to a scarcity of the local currency rather than restored confidence. "There isn't a lot of ZiG in the market," he said. The International Monetary Fund has welcomed the ZiG's stability but is urging Zimbabwe to adopt tighter money-growth limits, a more transparent foreign exchange market and to make progress on clearing an estimated $12.2 billion in external arrears. Finance Minister Mthuli Ncube, meanwhile, expressed hope last month that currency stability and appropriate monetary policy would enable Zimbabwe to raise $2.6 billion in bridge finance by mid-2026. Investors, however, remain cautious. "We wouldn't invest in Zimbabwe at the current stages. The country needs to have a lot more development before we would consider it," said Jetro Siekkinen at LGT Capital Partners. Economists also flagged concerns over Zimbabwe's reserve cushion, which stands at 0.8 months of import cover, well short of the IMF's recommended three-month safety net. "In terms of priority, I would consider the clearance of arrears with multilateral creditors to be most important," said Lyle Begbie, an economist at Oxford Economics. Two earlier IMF staff-monitored programmes collapsed within 15 months, and Begbie predicted similar outcomes for future efforts. "Ultimately, we are likely years away from the IMF providing concessional financing to Zimbabwe, even if the country does everything right, which itself is not likely," he said.
Al Jazeera
4 days ago
- Business
- Al Jazeera
G7 leaders push Trump on trade as talks continue
World leaders assembled at this week's Group of Seven summit in Canada will try to push United States President Donald Trump to back away from his punishing trade war, which experts say poses a risk to global economic stability. Most countries represented at the G7 are already subject to Trump's 10 percent baseline tariff with threats of more to come. European countries and Japan face additional levies on cars and steel and aluminium. The G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the US. Arriving for a meeting with the host, Canadian Prime Minister Mark Carney, Trump said trade would be the 'primary focus' of the summit, which began on Sunday and runs until Tuesday. The trade issue is of particular interest to Canada after the Trump administration announced several extra levies on Canadian goods in recent months. Mexican President Claudia Sheinbaum has been invited to the summit and will have her own face-to-face time with Trump as her country tries to renegotiate its three-way North American free trade agreement, which also includes Canada. While there is little expectation that the summit will end with a breakthrough in the trade negotiations between the US and the rest of the world, US Trade Representative Jamieson Greer is part of Trump's delegation. Dozens of countries are locked in negotiations with the Trump administration to clinch some sort of trade deal before the US imposes stinging 'reciprocal' tariffs, threatened for July. Last week, US Treasury Secretary Scott Bessent said the date could be pushed back later for countries thought to be negotiating in good faith. German Chancellor Friedrich Merz told reporters he would team up with his counterparts from France and Italy to discuss the US trade threat with Trump directly. '[French President] Emmanuel Macron, [Italian Prime Minister] Giorgia Meloni and I are firmly resolved to try, over the next two days, to talk again with the US government to see if we can find a solution,' Merz told reporters. 'There will be no solution at this summit, but we may be able to get closer to a solution in small steps,' he added. The European Commission handles trade negotiations for the 27-country European Union and the bloc's trade chief, Maros Sefcovic, was also attending the summit, accompanying the delegation of commission President Ursula von der Leyen. Shortly after arriving at the summit, von der Leyen on Monday made an appeal to 'keep trade between us fair, predictable and open' in a veiled plea for Trump to back off from his tariff onslaught. British Prime Minister Keir Starmer said he will talk about implementing the UK's trade deal with the US during his one-on-one with Trump. The UK in May was the first country to sign a preliminary deal with Washington to avoid deeper tariffs although the 10 percent baseline levy stays in place. Starmer said the deal was in its final stages and he expects it to be completed 'very soon'. The trade talks come alongside increasing tensions between Israel and Iran as the two countries exchange attacks. On Monday, an Israeli air strike hit an Iranian state TV station midbroadcast. Calls for de-escalation have been a point of contention at the meeting, according to Al Jazeera's James Bay. 'The problem with the G7 is that you have a range of views. You have President Trump on one end, who it seems will not even sign a statement on de-escalation. You have the Europeans, who have been saying 'de-escalation' since this current situation started on Friday,' Bay said. 'Japan was very different from the other countries. It was very, very strong in its condemnation of Israel's attack on Iran, so you can see just within the G7 a wide range of opinions,' Bay said.
Fox News
12-06-2025
- Business
- Fox News
Elizabeth Warren sides with President Trump on eliminating debt ceiling in NY Times guest essay
Sen. Elizabeth Warren, D-Mass., wrote in a New York Times guest essay on Thursday that President Donald Trump was "right about one thing," as she agreed with the president's call to eliminate the nation's debt ceiling limit. "It is possible that hell has frozen over. President Trump and I agree on something very important: Abolish the debt limit," Warren wrote in the Times opinion piece. "The debt limit is a political tool that allows the minority party to threaten economic collapse, forcing Congress to negotiate its demands. It serves no other function. None. It has no impact on spending, and it doesn't restrain the growth of the national debt." Trump's "Big Beautiful Bill" includes a debt ceiling increase of $5 trillion, which is a sore spot for some Republicans, including Sen. Rand Paul, R-Ky., who said it was a "terrible idea." "I've pushed publicly and privately, whether Democrats or Republicans have been in charge, to scrap the debt ceiling permanently. Now, with Mr. Trump's support, our country could finally get rid of this form of brinkmanship that has, for decades, threatened the stability of our economy," the liberal senator said. Trump posted on Truth Social in late May about their shared agreement. "I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe," he said. "It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World." The Massachusetts senator said keeping the debt ceiling limit felt like political games. "Keeping the debt ceiling around just feeds the political games as one party or the other threatens to block any increase and lets our country default," she wrote. Warren argued in the Times essay that the GOP was trying to pass a wave of "tax handouts for millionaires, billionaires and corporate giants" in the "Big Beautiful Bill," and argued they were taking health insurance away "from 16 million Americans." The Democratic senator stood firm against the bill, writing, "The current 'Big, Beautiful Bill' is morally bankrupt, and I will continue to fight against it." "The president is right on this point: Let's scrap the debt ceiling once and for all," Warren concluded.
