EU must brace for impact of Trump wrecking ball on global trading system | Heather Stewart

Forget the “Trump put”, as financial analysts called the bet that the US president’s policies would unleash a winning era for the nation’s stock markets. By Friday, the chat was of the “Merz spurt”.The decision by Friedrich Merz, the German chancellor-in-waiting, to cut a deal on ditching Germany’s debt brake – still to be confirmed by the outgoing parliament – marked a seismic shift.The EU country most associated with strict fiscal discipline is now contemplating what could in principle be unlimited borrowing to fund Europe’s defence.Lifting the brake, widely regarded by experts as an unnecessarily tight constraint on public spending in an economy sorely in need of stimulus, cheered European markets

‘Military Keynesianism’? Reeves faces British defence dilemma after EU spending surge

As the Nobel laureate Robert Lucas quipped during the 2008 financial crisis: “I guess everyone is a Keynesian in a foxhole.” Donald Trump’s upending of the postwar security consensus has underlined the enduring wisdom of Lucas’s observation. But now, instead of bank bailouts and emergency bond buying, European firepower is being directed at bombs, tanks and drones in the desperate fight to secure the continent’s border with Russia.Berlin and Brussels – typically capitals of financial orthodoxy – have been convinced that this approach is required once again. Under the plan put forward by Germany’s chancellor-in-waiting, Friedrich Merz, Berlin is on the brink of relaxing its “debt brake” rule to pave the way for spending on defence and infrastructure worth an additional €1tn (£840bn) over the coming decade

Buy British: it will help defend the UK against Trump | Phillip Inman

Invest in Britain. You might make a fortune. Take a punt on a fintech company or an artificial intelligence startup. Better still, join the rest of the world by targeting property, which is the go-to asset class for 80% of global investments seeking a stellar payout.Whatever you do, avoid retail

Justice department opens investigation into soaring US egg prices – report

The justice department has reportedly opened an investigation into what is driving the sharp rise in egg prices, including whether top producers have conspired to increase them.Officials are also said to be looking at whether companies have held back supply. Their investigation is in its early stages, and may not lead to any formal action, according to the Wall Street Journal, which cited sources familiar with the matter.The justice department did not immediately respond to a request for comment.The Guardian reported earlier this week on new research that suggests major egg corporations may be using avian flu as a ruse to hike up prices, generating record profits while hurting American consumers

UK Treasury ‘weighs up funding cuts at GB Energy’ in blow to Ed Miliband

The UK government is reportedly weighing up the possibility of cutting planned funding for GB Energy, the state-owned company set up by Labour to drive renewable energy and cut household bills, in June’s spending review.Cuts to the £8.3bn of taxpayer money promised over the five-year parliament would be another blow for Ed Miliband, the energy secretary, after he was overruled by the government when the chancellor, Rachel Reeves, backed the expansion of Heathrow’s third runway.GB Energy, a vital cog in Keir Starmer’s plans to “supercharge” Britain’s clean energy revolution, was only given an initial £100m in October’s budget to cover its first two years.Ministers are carrying out a “zero-based review” of all government spending, which has been given additional impetus after Starmer’s pledge to boost investment in defence

Andrew Bailey was accused by Barclays chair of having ‘destroyed’ Jes Staley, court hears

The Bank of England governor, Andrew Bailey, was accused by the Barclays chair of having “destroyed” Jes Staley, a court heard on Friday, after the City watchdog led by Bailey at the time launched an investigation into the banker’s ties to the convicted sex offender Jeffrey Epstein.Nigel Higgins, who made the accusations and is still the Barclays chair, also asked in 2019 whether the Financial Conduct Authority (FCA) would be willing to drop its investigation if Staley resigned.“We discussed whether there was a way for Mr Staley to step down from his position in order to avoid the investigation, which may have had some attraction for Barclays and Mr Staley,” Bailey said in a witness statement.However, he told Higgins it would be “impossible” to ignore a cache of emails from JP Morgan, which included a notorious exchange discussing Disney princess characters.“I explained that there was no way that we could avoid asking Mr Staley about the “Snow White” email,” Bailey, who was then running the FCA, said