Geoffrey Smith

1 month ago | politico.eu | Geoffrey Smith

The European Central Bank is set to cut interest rates again next week, determined to do its bit to support an economy beset by a host of problems largely outside its control. For four years, the ECB has been trying to slow the economy down, raising its key deposit rate to a record 4 percent to choke off inflation, before gradually lifting its foot off the brake since June. Next week’s expected rate cut will be the sixth in the current sequence, and will bring the deposit rate down to 2.5 percent.

1 month ago | politico.eu | Geoffrey Smith

The next German government is inheriting an economy that could stagnate for a third straight year, Deutsche Bundesbank President Joachim Nagel warned Tuesday. “It is not possible to rule out a third consecutive calendar year with no growth,” Nagel said at a press conference.

2 months ago | politico.eu | Geoffrey Smith

The U.K. economy fared marginally better than expected at the end of last year, eking out modest growth thanks to an uptick in industrial output. The news offers a modicum of relief to a government that has seen growth largely grind to a halt since it took office, with Chancellor Rachel Reeves’ first budget compounding some stiff international headwinds and the lingering effects of high inflation and interest rates.

2 months ago | politico.eu | Geoffrey Smith

The dollar surged and stock futures tumbled on Monday as the world lurched toward an all-out trade war. The dollar, which tends to rise at moments of global financial stress and uncertainty, surged across the board, while stock futures plunged on the first full day of trading since U.S. President Donald Trump announced the imposition of a suite of tariffs on imports from China, Canada and Mexico.

Dec 20, 2024 | politico.eu | Geoffrey Smith

The decision follows repeated outbursts from some of Russia’s most powerful industrialists, whose businesses have been squeezed hard by the sharp rise in rates this year. Their protests appeared to have finally made an impression in the Kremlin, which had until now consistently supported Nabiullina’s efforts, mindful that its heavy spending on the war in Ukraine has driven the economy to overheat.